FSCA debars another two people involved in BHI Trust for 30 years

The FSCA has debarred another two people for thirty years in connection with the NHI Trust after earlier debarring the founder of BHI, Craig Warriner, earlier for thirty years as well.

Warriner handed himself over to police last year and confessed that he ran BHI like a Ponzi scheme. About 2 000 investors lost about R3 billion they invested in BHI Trust that Warriner (60), instead of investing, used to pay interest to earlier investors.

He was sentenced to 25 years for fraud in the Palm Ridge Commercial Crimes Court after concluding a plea deal. The Financial Sector Conduct Authority (FSCA) also barred him for 30 years after investigating the conduct of the BHI Trust and Warriner between 7 February 2013 and 30 September 2023.

According to enforcement orders published on its website, the FSCA now also debarred Michael Haldane and Mauro Forlin in terms of sections 153(1) and (2) of the Financial Sector Regulation (FSR) Act, or alternatively, section 14a(1) of the Financial Advisory and Intermediary Services Act, with immediate effect.

According to the order, the FSCA prohibits Haldane and Forlin for 30 years from providing or being involved in the provision of all financial products or financial services, defined in all financial sector laws for which the FSCA is responsible under Schedule 2 of the FSR Act.

They are also not allowed to act as a key person of any financial institution as defined in the FSR Act and are banned from providing services relating to financial products or financial services.

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Haldane was also arrested for fraud and money laundering

The Hawks Serious Commercial Crime Investigation unit arrested Haldane (55) after he handed himself over to police on 3 June this year. The Hawks also arrested Sona Pillay (54).

Haldane and Pillay appeared in the Palm Ridge Specialised Commercial Crimes Court sitting in Palm Ridge Magistrates Court on charges of fraud and money laundering. They were granted bail of R100 000 each on 10 June.

It is expected that more individuals will be arrested in this case.

Warriner founded and managed BHI Trust and lived a high life, rubbing shoulders with the elite of Johannesburg. He pleaded guilty to 207 counts of fraud, corruption and practising without a financial services provider license in violation of the Financial Advisory and Intermediary Services Act.

Evidence in court showed Warriner used less than 20% of the funds invested in BHI Trust for legitimate trading.

Warriner was sentenced to 15 years for each of the 38 counts (570 years), but these will run concurrently. For the remaining counts, except count 207, he was sentenced to another 15 years, of which he will serve 10 years concurrently with the first sentence. He was also sentenced to 10 years on count 207, which will also be served concurrently with the first and second sentences.

BHI was liquidated in November 2023 following an investigation by the FSCA.

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