Fadwaan “Vet” Murphy, one of the biggest drug kingpins in the Western Cape who is serving an 18 year sentence and was once said to be worth R54 million, has not escaped the tax man after he was sentenced this week for tax evasion.
The case bears similar hallmarks to that of infamous gangster, Al Capone, who was ultimately convicted and imprisoned for tax evasion during the 1930s.
Murphy was also once accused of identity fraud and bribery of a police officer due to the use of two separate names and identity books - that of Hillary Murphy and Fadwaan Murphy, and was born a hermaphrodite, which became the context of a court matter before the Blue Downs Magistrate’s Court.
The court heard testimonies that he allegedly tried to bribe a police officer during a police search and cops claimed he had a prosthetic penis.
In July 2023, Murphy’s cases made South African history when he became the first drug dealer to be convicted under the Prevention of Organised Crime Act (Poca).
The State proved Murphy created an illegal enterprise, his business Ulterior Trading Solutions CC, to carry out criminal activities.
Murphy was slapped with an eight year direct imprisonment or face a fine of R48 000 for failure to submit income tax returns for himself and his business.
It took the State nearly two decades to nail Murphy for his drug dealing crimes and they proved they were not done with him just as yet.
During his mammoth trial at the Western Cape High Court, where he and seven others faced more than 200 charges, his business, Ulterior Trading Solutions CC, was listed as one of the accused in the matter.
National Prosecuting Authority spokesperson, Eric Ntabazalila, explained: “The Bellville Magistrate's Court has sentenced drug dealer and kingpin Fadwaan Murphy to eight years direct imprisonment or a fine of R48 000 as the court convicted him for failure to submit Income Tax returns for himself and his company.
“On March 13, 2025, the court sentenced Murphy on 16 counts of failing to submit Income Tax Returns for himself and his company, Ulterior Trading Solutions CC.
"On each count, he was sentenced to R6 000 or 12 months direct imprisonment with half suspended for five years on the condition that he is acquitted of the above offences during the period of suspension.
“His effective sentence is R3 000 or 6 months direct imprisonment per count, which amounts to R48 000 or 8 years imprisonment.”
Murphy is serving an effective 18 year direct imprisonment sentence after the High Court convicted him on a count of managing an enterprise conducted through a pattern of racketeering activity, a count of conducting or participating in the conduct of an enterprise through a pattern of racketeering activity, a count of receiving or retaining property derived from or through a pattern of racketing activity, 139 counts of attempt to deal in drugs, a count of dealing in drugs and 73 counts of money laundering.
The court also fined him R2 million after the State successfully argued that his drug dealing came from his greed for money and power and that his actions destroyed communities and the people living in them.
Ntabazalila the registrar of the court was ordered to issue a warrant addressed to the Sheriff of the court, authorizing and directing him to recover the amount of the fine, plus an additional amount sufficient to cover the costs and expenses of the warrant, attachment, and sale in execution, by the attachment and sale of any movable property belonging to his company.
“It further ordered if the proceeds of the sale of the movable property of Ulterior Trading Solutions CC are insufficient to cover the amount of the fine and the aforesaid costs and expenses, the registrar is authorised, on receipt of a return from the Sheriff stating that the proceeds are insufficient, to issue a warrant for the recovery on the unpaid amount from the immovable property of Ulterior Trading Solutions CC,” he stated.
In a plea and sentencing agreement in this fraud case, Advocate Conrad Heydenrych described Ulterior Trading Solutions CC as a close corporation that was registered as a taxpayer with an income tax reference number.
“Murphy was its sole member and representative taxpayer.
"He was also registered as a taxpayer with an income tax reference number who is required in terms of Section 66 of the Income Tax Act, Act 58 of 1962, to submit his and Ulterior Trading Solutions CC Income Tax Returns for assessment to the Commissioner and/or the South African Revenue Service (Sars),” said Ntabazalia.
“In terms of Section 25 of the Tax Administration Act, 28 of 2011 (“TAA”), Murphy is required to submit returns to Sars for both him and his company where is required to declare his and the company’s gross income as defined in Section 1 of the Income Tax Act, Act 58 of 1962. He failed to do the above.”
In aggravation of sentence, Advocate Heydenrych argued that the responsibility to submit accurate tax returns to Sars is a burden that all taxpayers share.
“The court convicted and sentenced the accused and ordered him to submit all his outstanding returns to SARS on or before 19 September 2025. The NPA welcomes the sentence as it commits itself in the fight against tax evasion crimes as they have far-reaching consequences on the fiscus,” Ntabazalila added.
Murphy also previously tried to appeal his sentence but was unsuccessful.
Cape Argus