Two more arrested over R2.8 billion Ponzi scheme

Henry

Sona Pillay (54) and Michael Philip Adam (55) were arrested in connection with the BHI-Ponzi scheme.

The 60-year-old Craig Roy Warriner has already been sentenced to 25 years in prison in connection with the same Ponzi scheme on 206 charges of fraud and that he operated an unregistered financial services business, says col. Katlego Mogale, spokesperson for the directorate for priority crime investigations (the Hawks).

Pillay was arrested on Friday. “He wanted to flee overseas where he was denied entry into the country and sent back to South Africa. The Falcons’ investigation team was waiting for him at OR Tambo airport.” It is not known where he wanted to flee to.

Adam turned himself in on Monday morning.

The two appeared in the specialized commercial crime court session at Palm Ridge Magistrates’ Court.

“The Falcons’ investigation linked Pillay and Adam to the Ponzi scheme, which began in 2008. Individuals invested capital worth more than R2.8 billion with promises that they would receive profits of more than 10%. New investment money was used to pay returns to investors or pay out withdrawals. Like a typical Ponzi scheme, the BHI Trust collapsed and they couldn’t keep paying the investors.”

Some of the investors suffered enormous losses.

“Warriner has been behind bars since his arrest in August 2023 until he was recently sentenced. More arrests in the case are expected.”

The court adjourned the case for seven days for a formal application for bail for Adam and Pillay. They must appear in court again on June 10. They remain in custody.