Sentencing imminent for Davids and Bredenkamp in R329 million Ponzi scheme case

Pastor Colin Davids of Platinum Forex CC and his co-accused, Derek Bredenkamp, who were convicted 10 years later of operating a ponzi Scheme, soliciting investments worth R329 million from the public, are expected to be sentenced in August.

The National Prosecuting Authority (NPA) confirmed this week that sentencing proceedings would take place in two months.

NPA spokesperson, Eric Ntabazalila, said sentencing proceedings are set for August 21.

The duo were convicted of fraud on June 10 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 and its sole member, Davids.

It was due to the successful investigation of the Financial Intelligence Centre (FIC), the Hawks and police.

The State proved that Platinum Forex, a close corporation based in Parow, Cape Town, 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.

The NPA said during the period 2009 to 2015 the duo promised investors a monthly return of 2% to 8% and guaranteed the invested amount at the end of the investment period. 

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

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