Johannesburg investment manager Craig Warriner has been sentenced to 25 years in jail for orchestrating a Ponzi scheme that defrauded investors of over R1.2 billion. The scandal, which collapsed in August last year, revealed the depth of a decade-long fraud scheme. Warriner, 60, was the former chair of the Old Boys’ Association of St Stithians College and founded and managed the BHI Trust.
Warriner 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. His lawyer, Piet du Plessis, argued that Warriner had not initially set out to defraud his investors but resorted to a Ponzi scheme as his financial troubles deepened. Captain Ernest Khangale, the lead investigator on the case, confirmed Warriner's full cooperation.
Captain Ernest Khangale admitted to acting without the necessary financial services license and confessed to misusing investors' funds. The Financial Sector Conduct Authority (FSCA) corroborated Khangale's account, noting that Warriner had fully complied with its probe. However, the state has yet to recover any of the lost assets. Warriner's detailed affidavit exposed the inner workings of the BHI Trust and implicated several other entities and individuals.
The BHI Trust fraud case has shocked the nation with its scale and sophistication. Initial reports indicated that 206 investors suffered losses, but the true extent of the fraud appears far greater. Bart Henderson, a veteran fraud investigator, suggests that the actual losses could exceed R3 billion, citing discrepancies between Warriner's confessions and the liquidators' findings.
As Warriner begins his 25-year sentence in Johannesburg's notorious "Sun City" prison, reflections on his past cast a stark contrast to his current reality. Warriner's transformation from a power-lifting swimmer at St Stithians to a solid mass of wealth and influence was as remarkable as his fall from grace. Friends speculated that he had been siphoning off money and investing in cryptocurrency, with plans to secure citizenship in Malta or Portugal.
The BHI Ponzi scheme has left a trail of financial devastation and unanswered questions. Investigations continue to reveal shocking details, including discrepancies in auditing practices and the involvement of various financial advisory firms. AfriForum, a lobby group representing several victims, has demanded that Warriner testify against other implicated individuals, leading to delays in legal proceedings. Warriner's life in prison remains shrouded in mystery, with attempts to smuggle a phone to him failing and he reportedly refusing to talk to anyone.
