Judge orders R100m returned to alleged Ponzi scheme investors
A Cape Flats pastor accused of running a multi-million ponzi scheme has lost his first round in court after a judge ordered that R100m in funds be handed back to his ‘investors’, according to a Daily Voice report. Colin Davids, the director of Platinum Forex Group, faces charges of fraud, contravention of the Financial Advisory and Intermediary Services Act, under which he was not registered or licensed to act.
The New Direction Church pastor, aged 49, is said to have run a scheme where investors were promised impossibly high returns, and were repaid with investments from newcomers. According to an auditor’s report, a total sum of R329m went into Davids’ accounts from more than 2 000 investors between November 2009 to July 2015. Last July, the Asset Forfeiture Unit seized assets worth R138m from Platinum Forex.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
