'Ponzi scheme' pastor released on R100 000 bail

2016-06-22 13:50


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Cape Town - A Cape Town pastor accused of running a Ponzi scheme has been released on bail of R100 000.

Colin Davids, 48, was arrested and appeared in the Bellville Magistrate’s Court on Wednesday on charges of contravening the Financial Advisory and Intermediary Services (FAIS) Act and the Banks Act. He is the director of the Platinum Forex Group.

Hawks spokesperson Captain Lloyd Ramovha said Davids, a pastor at the New Direction Grace Ministries in Parow, was allegedly running a scheme whose investors were mainly government employees who had retired or resigned from the service.

“In July 2015 Platinum Forex Group’s R100 million worth of assets were frozen on the order of the Western Cape High Court following the National Director of Public Prosecutions’ application for a Preservation Order in terms of the Prevention of Organised Crime Act,” he said.

Davids in July contacted News24 following the freezing order, vehemently denying all allegations levelled against him and his company.

The National Prosecuting Authority at the time 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.

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.

The case against Davids was postponed to January 18 for further investigation.

Ramovha urged those who have been “victims” of Platinum Forex to contact investigating officer Lieutenant Colonel J Hardenberg on (021) 918 3354 or HardenbergJ@saps.gov.za.

Read more on:    cape town  |  crime

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