The long arm of the law has finally caught up with two more suspects implicated in the R2.8-billion BHI Ponzi scheme.
The recent arrests of 54-year-old Sona Pillay and Michael Philip Adam, 55, come after the Hawks’ serious commercial crime investigation put Graig Roy Warriner behind bars.
The 60-year-old Warriner was convicted and sentenced 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 licence or being registered as a financial service provider.
“Pillay was arrested on Friday after he attempted to flee overseas, where he was refused entry and sent back to South Africa, where he found the Hawks’ investigating team waiting for him at the OR Tambo International Airport, while Adam handed himself over on the morning of June 3,” said Hawks spokesperson Colonel Katlego Mogale.
“The pair subsequently appeared in the Palm Ridge specialised commercial crimes court, sitting in the Palm Ridge magistrate’s court.”
She said 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 more than 10%.
Losses for investors
“In typical Ponzi scheme fashion, the BHI Trust scheme started to falter and failed to keep up with the promised returns on investment.”
The scheme used capital for payments to investors withdrawing their capital from BHI Trust as fictitious profits. The elaborate misrepresentation of the scheme led to massive losses for the investors.
Warriner has been in prison since his arrest in August 2023, culminating in his recent sentencing, said Mogale.
“It is expected that more individuals will be arrested in this case.”
Suspects remanded in custody
Mogale stated that the Palm Ridge specialised commercial crime court has postponed the case to June 10 for formal bail application, with the pair remanded in custody.
The Gauteng provincial head of the hawks, Major-General Ebrahim Kadwa, has welcomed the arrests.
“We are pleased with the progress made, and we are looking forward to the finalisation of the case,” Kadwa said.
“The public is hereby warned to treat any investment scheme that promises more than usual returns with scepticism.”
