Pastor accused of pyramid scheme expected in court

2017-01-18 06:11
Pastor Colin Davids with his wife Charlyn (Supplied via Netwerk24)

Pastor Colin Davids with his wife Charlyn (Supplied via Netwerk24)

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Cape Town – A Cape Town pastor accused of being behind a pyramid scheme is expected in the Bellville Magistrate's Court on Wednesday.

Colin Davids of the New Direction Grace Ministries faces charges of fraud for allegedly contravening the Financial Advisory and Intermediary Services Act and Banks Act.

He was released on bail of R100 000 in June 2016.

His trading company, Platinum Forex, was allegedly not registered with the Financial Services Board and he allegedly promised his clients higher than usual returns on their investments.

News24 last year reported that the National Prosecuting Authority said the scheme collected money under the guise that it was a lawful investor that invests in foreign exchange investments (forex).

According to the NPA, investigations revealed the "unlawful business" took place during August 2013.

False promises

The asset forfeiture unit alleged a probe revealed that instead of investing the monies it collected, it used some of the funds received from the public for its own benefit.

The company is accused of making false promises that their investments would yield interest returns of between 48% and 84%.

Investigations also allegedly showed that Platinum Forex also used some of the funds received from investors to pay other members.

According to the Hawks, several "investors" had already come forward with affidavits.  

Last week the Hawks urged any "investors" who were possibly conned in the alleged scheme to contact Lieutenant Colonel Jerome Hardenberg on 082 850 9747 or to email him at HardenbergJ@saps.gov.za for appointments to depose affidavits.

Read more on:    cape town  |  crime
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