FSCA Fines Man R1.5 Million, Bans Him For 20 Years Over SA Ponzi Scheme Involvement

• Ian Roscoe was fined R1.5 million and banned from financial services for 20 years due to his BHI Trust involvement
• The regulator investigated fraudulent claims linked to a Ponzi scheme, affecting R2.9 billion from investors
• Craig Warriner was sentenced to 537 years for 207 counts of fraud in an extensive investment scam

Justin Williams, a journalist at Briefly News since 2024, covers South Africa’s current affairs. Before joining Briefly News, he served as a writer and chief editor at Right for Education Africa’s South African chapter.

The Financial Sector Conduct Authority (FSCA) has fined Ian Roscoe R1.5 million and barred him from the financial services industry for 20 years over his involvement in the BHI Trust investment scheme.

Roscoe fined R1.5 million and barred for 20 years

According to the Daily Investor, the regulator indicated that its action followed an investigation which found that Roscoe had provided intermediary services that led clients to invest in the scheme operated by Craig Warriner. Warriner, who has been widely compared to Bernie Madoff, used his social network to attract investments from thousands of wealthy clients. He promoted three purported investment strategies, BHI Strategy, BHI Plus and BHI International, claiming to generate consistent daily profits through trading shares in mining companies such as BHP Billiton and Anglo American.

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Authorities found these claims to be false. The FSCA determined that the operation functioned as a Ponzi scheme, with only R584 million of the R2.9 billion collected from investors being placed in legitimate investments. The remaining funds were held in a money market account and used to pay returns to other investors while also funding Warriner's lifestyle.

Cumulative sentence of 537 years' imprisonment

Warriner later handed himself over to the police and was convicted on 207 counts of fraud. He received a cumulative sentence of 537 years' imprisonment, which translates to an effective 25-year term, and was also debarred for 30 years from providing financial services.

In its findings, the FSCA noted that both the BHI Trust and Warriner had previously contravened the Financial Advisory and Intermediary Services Act by operating as discretionary financial services providers without proper authorisation.

The regulator further determined that Roscoe was not authorised as a financial services provider at the time he rendered intermediary services, placing him in breach of Section 7(1) of the FAIS Act.

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Former Proteas all-rounder sued for millions over alleged Ponzi scheme

Briefly News also reported that former South African cricket star Albie Morkel is facing legal action after being sued for R3.3 million by the liquidators of companies allegedly operating a Ponzi scheme in South Africa.

Morkel invested R350,000 in IPG Main Sales, one of two companies run by Pretoria businessman Nico le Roux. Court papers state that he received 10 payments totalling R3.6 million. The liquidators are now seeking to recover R3.3 million, which represents the profits above his initial investment. Morkel also allegedly received R75,000 from IPG Properties without making any investment. Insolvency attorneys sent him two letters of demand.

Source: Briefly News