Over the past year, South Africa has seen the collapse of three major Ponzi schemes – and the masterminds behind them. Here’s where they are now.
Over the past few years, South Africa has experienced the rise and fall of three large Ponzi schemes — MTI, BHI Trust, and the Diamond Scheme — that saw investors lose millions.
This means people expecting to make a good return on their investment not only get nothing but also stand to lose most, if not all, of the money they initially invested. Despite the lessons learned from the Kubus scheme, Ponzi schemes continue to plague South Africa, costing unsuspecting individuals millions of rands.
However, three schemes – MTI, BHI Trust, and the Diamond Scheme – managed to break through and lure thousands of investors, resulting in significant losses.MTI – Johann SteynbergMirror Trading International , led by Johann Steynberg, was one of South Africa’s largest pyramid schemes. While Steynberg was convicted on the false identity document charges, he was remanded to house arrest.
The FSCA and other international agencies are now focusing on closing regulatory gaps to prevent future Ponzi schemes from flourishing under the guise of cryptocurrency investments.Craig Warriner orchestrated a massive fraud through the BHI Trust, deceiving South African investors in a scheme reminiscent of Bernie Madoff’s infamous Ponzi operation.
The trust collapsed in late 2023, after which Warriner surrendered to the authorities and appeared in the Palm Ridge Magistrates Court, representing himself. Following an investigation, the FSCA banned Warriner from offering financial services, and in May 2024, he was sentenced to 25 years in prison after pleading guilty to 207 charges of fraud, corruption, and violating financial services regulations.
His company, Tariomix, operated under the name Forever Diamonds and Gold, soliciting investments from thousands of people under the pretence of purchasing diamonds.
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