Colin Davids Sentencing: R329 Million Ponzi Scheme Exposed

From Pulpit to Courtroom: A Decade‑Long Saga Unfolds

In a dramatic fall from grace, Pastor Colin Davids and his associate Derek Bredenkamp are finally facing sentencing – 11 years after launching one of South Africa’s most notorious financial fraud schemes. On 10 June 2025, the Bellville Specialised Commercial Crimes Court convicted the pair for orchestrating a R329 million Ponzi scheme through their Parow-based company, Platinum Forex CC.

False Promises, Real Losses

From 2009 to 2015, the duo lured the public into investing with promises of monthly returns between 2% and 8% and full repayment at the end of the investment term. Investors believed they were backing foreign exchange deals. In reality, a classic Ponzi scheme was at play – new money was used to pay old investors.

A Lavish Lifestyle Fuelled by Fraud

Court papers revealed that Davids used investor funds to support an opulent lifestyle. He bought two luxury properties in Plattekloof and Hermanus and vehicles for his wife and paid for everyday expenses from stores like Woolworths, Pick n Pay, and Checkers.

The Long Road to Justice

The scheme unravelled in 2015, when a preservation order was issued by the Western Cape High Court to seize assets tied to Platinum Forex. The order followed a joint investigation by the Financial Intelligence Centre (FIC), the Hawks, and the police.

It took nearly a decade of legal wrangling before the final conviction was handed down. The National Prosecuting Authority (NPA) has now confirmed that sentencing is scheduled for 21 August 2025.

Public Reaction: Outrage and Relief

Reactions on social media have been swift. One user on X (formerly Twitter) wrote:

“People lost their life savings… because they trusted a man who stood at the pulpit.”

The case has reignited public anger over unregulated forex investment scams, many of which continue to prey on financially vulnerable South Africans.

A Wake‑Up Call for Investors

This case highlights the urgent need for investor education. Authorities warn the public to always confirm whether a company is registered with the Financial Sector Conduct Authority (FSCA) before investing – and to question any promises of guaranteed, high monthly returns.

What’s Next?

The sentencing on 21 August 2025 is expected to bring closure to a saga that’s dragged on for more than a decade. But for many victims, the big question remains: Will any of the stolen millions be recovered?

Also read: Charity ‘Icon’ Accused: Tears Foundation Founder Allegedly Funneled R2 Million into Personal Beauty Treatments

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Source: IOL

Featured Image: The Post