In a dramatic climax to one of South Africa’s most notorious financial scandals, Johannesburg investment manager Craig Warriner has been sentenced to an effective 25 years in jail for orchestrating a Ponzi scheme that defrauded investors of over R1.2 billion.
Warriner, the mastermind behind the BHI Trust, accepted a plea deal after facing 207 counts of fraud, corruption, and operating without a financial services provider (FSP) license in contravention of the Financial Advisory and Intermediary Services (Fais) Act.
Evidence provided by the Financial Sector Conduct Authority (FSCA) revealed that Warriner roped in a staggering R2.9 billion since January 2020, but shockingly used less than 20% (approximately R584 million) for legitimate trading.
[ Police Minister Bheki Cele Ordered To Pay R3.3m To Man Detained For 3years Without Evidence ]
The remaining 80% was diverted to repay older clients and fund his extravagant lifestyle. Notably, the FSCA audit did not include funds received from clients in the years prior to 2020, suggesting that the true scale of the Ponzi scheme extends back at least two decades and likely involves several billion rands more than reported2.
Warriner, a former insurance salesman turned day trader, had previously wiped out roughly half of his clients’ capital during the 2008 financial crash. Despite this setback, he continued to rope in new funds while providing bogus statements of account to existing clients.
In October of last year, he finally surrendered to police, admitting to running a Ponzi scheme. His request to be placed in a cell by himself due to alleged threats on his life was granted, and he now faces a lengthy prison sentence.
Gerhard van Deventer, head of enforcement for the FSCA, emphasized the thoroughness of their forensic audit. The evidence they provided to the state prosecutor played a crucial role in securing the 25-year sentence against Warriner.
The FSCA’s investigation traced the flow of funds, revealing the extent of the deception and ensuring justice was served. Van Deventer stated, “We made this evidence available to the state prosecutor, and this was key in securing the 25-year sentence against Mr Warriner”.
The sentencing of Craig Warriner sends a powerful message about the consequences of financial fraud and the importance of regulatory oversight. As investors grapple with the aftermath of this massive Ponzi scheme, authorities continue to work tirelessly to protect the public from such deceptive practices
Catch up with the latest news from The Times Post on WhatsApp by following our channel. Click here to join.
Kindly follow @thetimespost on Instagram. On X (Twitter), follow @thetimespost2.
