Accused Ponzi scheme pastor's houses auctioned
Two posh mansions owned by a Cape Flats pastor accused of running a multi-million rand Ponzi scheme has gone under the hammer. According to a report on the IoL site, the five-bedroom Plattekloof house of Colin Davids, the director of Platinum Forex Group, was sold within 10 minutes at an auction held at the property in Melkhout Street. Bidding started at R2m and the highest bid received was a whopping R4.6m.
His six-bedroom Hermanus holiday house was auctioned earlier this month for R3.8m.
The houses were sold after Davids (49), of the New Directions Church in Parow, lost his first round in court in May after a Western Cape High Court judge ordered that R100m in cash be paid back to his ‘investors’.
Davids faces charges of fraud, and being in contravention of the Financial Advisory and Intermediary Services Act ), for which he was not registered or licensed to perform. Investors were allegedly promised ‘impossibly’ high returns, and were repaid with investments from newcomers.
The pastor is to appear in Bellville Magistrate's Court on 27 September.
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.
