Directorate for Priority Crime Investigation (Hawks) spokesperson, Captain Anelisa Feni, said it was alleged that Madikizela visited a cellphone shop in East London on the 17th of June 2014 and fraudulently conducted two SIM swaps.
Feni said it was alleged that after the SIM swap was conducted, Madikizela transferred a large sum of money into eight different accounts.
This includes "just under R100 000 from an account belonging to a 73-year-old man from Durban and approximately R380 000 from an account of a 72-year-old woman from Cape Town," said Feni.
Madikizela was arrested on Monday by the Serious Commercial Crime wing of the Hawks and is currently out on bail of R1 000.
He is expected back in court on June 2.