After a decade-long legal battle, former pastor Colin Davids and his associate, Derek Bredekamp, have each been sentenced to nine years in prison for running a massive Ponzi scheme that defrauded investors of R329 million.
The two men, aged 58 and 59, were found guilty of fraud, money laundering, and violating financial regulations through their company, Platinum Forex CC. From 2009 to 2015, they lured the public with promises of guaranteed monthly returns of between 2% and 8%. Instead of legitimate trading, they paid old investors with money from new ones — the hallmark of a Ponzi scheme.
The court heard how millions were funneled into personal spending, properties, and disguised purchases, while most of the forex investments were lost. At least R87 million was pushed into trades that failed, deepening the losses.
Their assets were frozen back in 2015, when authorities uncovered the scale of the operation. Many victims, including congregants who trusted Davids as a church leader, testified to losing their life savings.
During sentencing, the judge highlighted the devastating impact of the scheme, which ran unchecked for years under false promises of security and profit. Both men were sentenced to 12 years for fraud, with three years suspended, leaving them to serve nine effective years behind bars.
The case has been described as one of South Africa’s most significant financial crime prosecutions in recent memory, sending a strong message about the consequences of exploiting public trust for personal gain.