Expelled former head of the National Freedom Party Mulalo Peggy Mokoena was arrested by the Hawks at her luxury home on Wednesday, according to a report.
Mokoena allegedly swindled a local farmer out of thousands of rands, the Beeld reported on Friday.
In September 2011, she was released on bail of R2 000 after being charged with alleged theft and fraud. That case is due to be heard on August 13 in the Polokwane magistrate's court.
Limpopo's provincial police spokesman Brigadier Hangwani Mulaudzi told the newspaper that two other people, Mokoena's lawyer and a business partner, were also taken into custody.
The lawyer allegedly approached a farmer with a proposal to take out a loan with Mokoena's money lending scheme.
The farmer paid Mokoena R7 100 in order to secure a loan of R3.8 million, but never heard from Mokoena again.
Mulaudzi said Mokoena, 51, had also allegedly recently bought three cars from a local dealership with fraudulent documents. - Sapa