Ex-pastor and co-accused sentenced to nine years for orchestrating R329 million Ponzi scheme

A decade after their Ponzi-scheme ground to a halt, ex-pastor Colin Davids, 58, of Platinum Forex CC and his co-accused, Derek Bredekamp, 59, were each sentenced to nine years' imprisonment for financial fraud. 

Davids and Bredekamp appeared at the Bellville Specialised Commercial Crimes Court this week, where they were sentenced after being convicted on a myriad of charges, which included soliciting investments worth R329 million from the public.

Hawks spokesperson, Zinzi Hani, confirmed that the sentences were handed down following their conviction on June 10, 2025, following an immense court case running since 2015.

“In 2015, the Western Cape Division of the High Court in South Africa, Cape Town, 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 Hawks Serious Commercial Crime Investigation team, together with Financial Intelligence Centre (FIC), and the police.

“It is reported that the duo, representatives of Platinum Forex, a close corporation based in Parow, Cape Town, operated a Ponzi scheme where they solicited investments from the public to the amount of R329 million. 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,” said Hani.

During the trial, the court heard that 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, subsequently paying investors with money from other/new investors.

The investigation revealed that Davids used some of the investors’ funds for his personal gain.

“All charges were taken together for purpose of sentencing to 12 years' imprisonment. Three years is suspended, effectively, the duo will serve nine years direct imprisonment each,” said Hani.

The accused were accordingly sentenced for the contravention of the Financial Advisory and Intermediary Service Act and contravention of the Banks Act.

For 56 counts of fraud, both accused were sentenced to 12 years' imprisonment each of which three years is suspended.

Hani further confirmed they were also sentenced accordingly for a count of money laundering and both were sentenced to three years' imprisonment each for the contravention of Section 4 of the Prevention of Organised Crime Act. 

Davids, his company, and Bredekamp were convicted after a decade-long trial in June this year after the Ponzi scheme operations ground to a halt in 2015 when the company's assets were frozen, following extensive investigation by the Hawks.

During the trial, the State proved that Davids was the sole member of Platinum Forex CC and chief executive officer of the company, and Bredenkamp was the marketing manager. 

They made payments to various forex brokers to conduct forex trading, totalling R87.5 million, the large majority of which was lost. Monthly interest paid to investors and lenders was generated from investments and loans received from new investors and lenders.

During the trial, senior State advocate Jannie Knipe also proved that the three accused and agents acting on their behalf were not entitled and authorised to accept deposits, investments, and loans from the public. 

As part of money laundering, the duo bought property, equipment, and furniture, which concealed or disguised the nature, source, location, disposition, or movement of the said monies.

chevon.booysen@inl.co.za