The Financial Sector Conduct Authority (FSCA) is investigating a ponzi scheme moonlighting as a trust for investors.
The FSCA has confirmed that it is probing BHI and its director Craig Warriner for fleecing investors close to R3-billion through investments made to the ponzi scheme under pretenses that the funds were going to be used to get high returns for investors.
However, all this turned out to be a lie.
“The Financial Sector Conduct Authority confirms that it is investigating the BHI Trust, Mr Warriner, and other persons,” said the financial institutions market conduct regulator.
“The FSCA is aware of media reports relating to alleged criminal charges against Mr Warriner and is also aware of his arrest relating to charges of fraud and theft.
“The focus of the FSCA investigation is on the activities of the BHI Trust and the possibility that it was conducting unauthorised financial services business and unauthorised collective investment scheme business.
“The FSCA confirms that none of the parties under investigation are authorised as financial services providers or licensed as collective investment schemes managers.
“The FSCA has on numerous occasions warned the public of the dangers of conducting financial services business with entities that are not suitably authorised.”
Warriner languishes in jail
Warriner, a trustee and fund manager of BHI Trust, is in jail in Johannesburg after he handed himself to the Sandton police when he realised the net was closing on him.
“Conducting unregistered business is a criminal offence,” said the FSCA.
“When investors buy financial products and services from entities that are not licensed as financial institutions, they do so at their own risk, and they do not enjoy the protection and risk mitigation measures associated with appropriately licensed and authorised entities.
“Licensed financial institutions are subject to strict laws and oversight by the regulator ensuring that the businesses are well-governed and treat their customers fairly.
“The FSCA has extended its investigation to include regulated entities that may have promoted the products of BHI Trust.
“If found to have done so, this is a serious contravention of financial laws, and may be subject to a fine, debarments of individuals involved from the sector and possibly removal of licence.”
Tables turned on Warriner after investors approached their lawyers to fight for them over what they claimed to have been a scam by the BHI Trust.
