FRAUDSTER, HIS COMPANY, AND MARKETING MANAGER CONVICTED FOR FRAUD AND MONEY LAUNDERING

17 JUNE 2025

FRAUDSTER, HIS COMPANY, AND MARKETING MANAGER CONVICTED FOR FRAUD AND MONEY LAUNDERING

Bellville, South Africa, The Bellville Commercial Crimes Court has convicted fraudster Colin Davids, his company Platinum Forex CC and the company’s marketing manager, Derek Bredekamp, on contravention of the Financial Advisory and Intermediary Services Act, fraud, and money laundering. During the trial, the State proved that Davids was the sole member of Platinum Forex CC and Chief Executive Officer of the company; Bredenkamp was the marketing manager. They, directly or indirectly, solicited deposits, investments, and loans in the total amount of R329.8 million from individuals to hold in trust and forex trading on behalf of and to the benefit of such investors and lenders. They made payments to various forex brokers to conduct forex trading, totalling R87.5 million, the large majority of which was lost. Monthly interest paid to investors and lenders was generated from investments and loans received from new investors and lenders.

The Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act), which came into operation with effect from 30 September 2004, regulates the rendering of certain financial advisory and intermediary services to clients. In terms of Section 7 of the FAIS Act, a person may not act or offer to act as a financial services provider unless such a person has been issued a license under Section 5 of the FAIS Act. Section 7, read with Section 36 of the FAIS Act, makes it a statutory offence to act as a financial services provider unless a person has been issued with a license under Section 8 of the FAIS Act.

Any person who contravenes the provisions of Section (1) or (3) and Section 8 is guilty of an offence and is on conviction liable to a fine not exceeding R1 million or to an imprisonment for a period not exceeding 10 years or both such fine and such imprisonment. The Banks Act 94 of 1990, which came into operation with effect from 01 February 1991, provides for the regulation and supervision of all banks within the legal jurisdiction of the Republic of South Africa. Before a person may legally conduct the business of a bank in the Republic of South Africa, such a person must be a public company with b registered by the Registrar of Banks as a bank in terms of the Banks Act.

Senior State Adv Jannie Knipe also proved that the three accused and agents acting on their behalf were not entitled and authorised to accept deposits, investments, and loans from the public. They promised to hold in trust such investments and utilise such deposits, investments, and loans for forex trading on behalf of and to the benefit of the complainants. They would pay the monthly interest earned by the complainants on their investments and loans from the profits realised from forex trading.

They further misrepresented that they could provide the complainants with a 2-8% monthly return on their investments and loan periods and would reimburse the capital amounts invested and loaned with interest in terms of the agreements concluded with the investors and lenders on their investments and loans from the profits realised from holding in trust and forex trading. The State alleged that the parties, as part of money laundering, bought property equipment, furniture, which concealed or disguised the nature, source, location, disposition or movement of the said monies.

The accused made their first appearance on 29 November 2017, and the case was postponed numerous times due to various applications. On 25 February 2025, the accused pleaded not guilty. Adv Knipe called 34 witnesses to prove its case beyond a reasonable doubt in respect of the aforesaid statutory offences (R329m) and fraud in the total amount of R5, 8m. On 19 April 2024, the State closed its case, and the defence made an application in terms of Section 174 of the Criminal Procedure Act for the accused to be acquitted. The State responded to the defence’s application, and the court made a ruling that the State had made out a prima facie case against the accused. The application for section 174 was therefore unsuccessful.

The court convicted the accused on 10 June 2025, and sentencing proceedings will resume on 18 June 2025. The NPA welcomes the conviction of the accused, as obtaining convictions in high-profile and complex corruption prosecutions is a difficult matter, with an onerous standard of proof beyond a reasonable doubt. The NPA will prioritise the prosecution of these crime types and criminals that disproportionately undermine the rule of law.

Issued by:

Eric Ntabazalila
National Prosecuting Authority
Regional Communications Manager – Western Cape
Tel: (021) 487 7308
Mobile: 073 062 1222