10 years later: Pastor convicted for operating R329m ponzi scheme in Cape Town

It has taken 10 years to convict Pastor Colin Davids of Platinum Forex CC, and his co-accused Derek Bredenkamp, who were found guilty of operating a ponzi scheme, soliciting investments worth R329 million from the public.

The duo were convicted of fraud on Tuesday following a mammoth court case running since 2015.

In 2015, the Western Cape High Court granted the preservation order to seize the assets of Platinum Forex.

It was due to the successful investigation of the Financial intelligence Centre (FIC), the Hawks and the police that led to the conviction.

The State proved that Platinum Forex, a close corporation based in Parow, unlawfully collected more than R100 million from unsuspecting members of the public under the guise that it was a lawful investor that invests in foreign exchange investments (forex). 

It was also proven that Platinum Forex was not registered as a financial service provider and was not lawfully entitled to conduct the business of a banker.

According to Hawks spokesperson, Siyabulela Vukubi, Davids, 56, and Bredenkamp, 58, were convicted of fraud in the Bellville Specialised Commercial Crimes Court.

“During the period 2009 to 2015, Colin Davids, Platinum Forex CC and Derek Bredenkamp operated a ponzi scheme.

"They solicited investments from the public to the amount of R329 million.

"They promised investors a monthly return of 2% to 8% and guaranteed the invested amount at the end of the investment period.

"The accused paid investors with another investors' money and alternatively with the new investors' money.

“The matter was investigated by the Hawks' Bellville-based Serious Commercial Crime Investigation and the court eventually found the three accused guilty on: Count 1: Contravention of section 7(1) Financial Advisory and Intermediary Services Act 37 of 2002; Count 2: Contravention of section 11(1) of the Banks Act 94 of 1990; one count of money laundering by contravening of Section 4 of POCA, Act 121 of 1998; and 56 counts of fraud.

“A confiscation order of approximately R100 million was granted against the accused and his business.

“Furthermore, the accused bail has been cancelled and they were remanded in custody awaiting sentencing that will be handed down on June 18, 2025.”

According to previous court papers, shared via the National Prosecuting Authority, investigations showed that contrary to the promise made to clients that their monies would be invested in the forex market, some of the monies were in fact "invested" in short-term investment accounts held with ACM Gold and Forex Trading (Pty) Ltd, a Gauteng-based entity and Nedbank. 

The court papers states that Davids used some of the investors’ funds to pay for two immovable properties in Plattekloof and Hermanus, motor vehicles for his wife, household expenses from retail stores such as Woolworths, Checkers and Pick n Pay.

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