Alleged Ponzi scheme mastermind arrested in R23m fraud case

The alleged mastermind of a Ponzi scheme, where investors lost more than R23 million, was arrested on Monday in the Western Cape by the Hawks’ Serious Commercial Crime Investigation.

42-year-old Jaco Botha appeared in the Riversdale Magistrate’s Court on Monday after he was arrested for an alleged fraudulent investment scheme.

According to authorities, a case involving Edenpark Police Station was registered in October 2023. 

Ponzi scheme mastermind duped people into investing in his company

The Hawks spokesperson, Captain Lloyd Ramovha, said a warrant of arrest was duly authorised, and Botha was traced and arrested in Riversdale on Monday. He subsequently appeared in court on the same day.

“The allegations are that, from April 2023 to July of the same year, Botha duped multiple individuals into investing money with his company, Steadfast (Pty) Ltd,” Ramovha said.

“He promised them high-interest returns on investment over some time. This was never the case, as no returns were ever received by the investors.”

According to the Hawks, investigations revealed that the suspect’s company was never registered at the Financial Sector Conduct Authority (FSCA) as a financial institution, licensed to conduct investment, nor was it authorised to take deposits from the public.

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This is a breach of the Banks Act and the Financial Advisory and Intermediary Services Act (FAIS).

After Botha’s court appearance, his case was transferred to the Palm Ridge Court in Ekurhuleni, Gauteng, for a bail hearing on Monday, 2 September 2024.

Elderly man running Ponzi scheme sentenced to 25 years

In May, an elderly man was sentenced by the Johannesburg Specialised Commercial Crimes Court, sitting in Palm Ridge, to 25 years for running a Ponzi scheme.

60-year-old Graig Roy Warriner was the trustee and sole signatory of BHI Holdings (Trust) and therefore made all trading and investment decisions of the Trust.

According to National Prosecuting Authority (NPA) regional spokesperson Phindi Mjonondwane, Warriner contracted individuals, inducing them to invest capital worth over R74 million into stocks on the Johannesburg Stock Exchange (JSE) and JSE Money Market/Cash between December 2020 and October 2023, with a promise of generating profits.

“The accused, over a period, persisted in misleading the investors as to the situation relating to their investments and the returns on such investments, resulting in an increased actual loss suffered by the investors,” Mjonondwane said.

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