The Gauteng High Court has suspended lawyer Sipho Gift Baloyi amid allegations that he fraudulently obtained a R500,000 loan using a client’s personal information. The Gauteng Legal Practice Council (LPC) has accused Baloyi of lying to the client, claiming their loan application was declined while secretly pocketing the funds.
Details of the Allegations
According to LPC director Ignatius Briel, Baloyi allegedly facilitated bridging finance—a short-term loan against a pending Road Accident Fund (RAF) or medical negligence claim—but deceived the client by stating the application was unsuccessful. Instead, the funds were deposited into Baloyi’s trust account and misappropriated.
Briel revealed that the client denied signing any loan documents, suggesting Baloyi may have forged their signature. Despite admitting to taking the money and promising repayment from property sales, Baloyi failed to refund the amount and has since avoided disciplinary hearings.
Broader Investigation Underway
The LPC is investigating at least two other cases where Baloyi allegedly withheld RAF payouts from clients, bringing the total suspected misappropriation to around R500,000. The council has filed an application to have him disbarred, citing him as a “danger to the public.”
However, the probe faces challenges as Baloyi has abandoned his practice, leaving behind incomplete financial records. The LPC is now tracing bank statements to determine the full extent of the fraud.
Warning to the Public
Briel cautioned against reckless use of bridging finance, noting that it reduces final claim payouts due to high interest. He urged clients to maintain regular contact with their attorneys and report suspicious activity to the LPC.
Victims of legal malpractice can contact the LPC.
The case highlights growing concerns over unethical practices in legal and RAF claims processes, with authorities vowing to pursue accountability.