The Hawks Serious Commercial Crime Investigation has led to the arrest of Sona Pillay (54) and Michael Philip Adam (55) implicated in BHI Ponzi Scheme case which has thus far resulted in the conviction and sentencing of 60-year-old Graig Roy Warriner to 25 years imprisonment on 206 counts of fraud and one of Contravening the Financial Advisory and Intermediary Services Act for operating an investment scheme without a license or being registered as a Financial Service Provider (FSP).
Pillay was arrested on Friday, 31 May 2024, after he attempted to flee overseas where he was refused entry and sent back to the Republic of South Africa where he found the Hawks’ investigating team waiting for him at the OR-Tambo International Airport (ORTIA) whilst Adam handed himself over on the morning of 3 June 2024. The pair subsequently appeared in the Palm Ridge Specialised Commercial Crimes Court sitting in Palm Ridge Magistrates Court.
The Hawks investigation has linked Pillay and Adam to the Ponzi scheme that started in 2008, wherein individuals invested capital to the tune of over R2.8 billion with promises of generating profits exceeding interest of over 10%. In typical Ponzi scheme fashion, BHI Trust scheme started to falter and failed to keep up with the promised returns on investment.
The scheme utilised capital for payments to investors withdrawing their capital from BHI Trust as fictitious profits. The elaborate misrepresentation by the scheme led to massive losses by the investors.
Warriner has been in prison since his arrest in August 2023 culminating in his recent sentencing. It is expected that more individuals will be arrested in this case.
The Palm Ridge Specialised Commercial Crimes Court has postponed the case for seven days for formal bail application to 10 June 2024 with the pair remanded in custody.
The Gauteng Provincial Head of the Hawks Major General Ebrahim Kadwa has welcomed the developments in the case. “We are pleased with the progress made and we are looking forward to the finalization of the case. The public hereby warned to treat any nvestment scheme that promises more than usual returns with skepticism.” He said
The post Additional arrest in R2.8 billion BHI holdings Ponzi Scheme first appeared on South Africa Today.