Cape Town - A Cape Town pastor accused of running a multi-million rand ponzi scheme will not be getting access to R290 000 of his seized funds each month, the Western Cape High Court has ruled.
Colin Davids, the CEO of foreign currency trading company Platinum Forex, had requested R90 000 for family expenses and R200 000 for legal fees a month.
But on Friday Judge Siraj Desai refused the application, saying Davids had yet to explain how R500 million disappeared from the company’s account two months ago, according to an Asset Forfeiture Unit (AFU) statement.
Desai said R90 000 per month was not considered reasonable for a family of six, reports Weekend Argus.
Davids could also not explain how he had calculated the R200 000 per month for legal costs, the judge found.
In July, the AFU seized assets worth R138 million from Platinum Forex.
Davids, who is a pastor at the New Direction Grace Church in Parow Industria, is being investigated for allegedly:
* Running a company that is not lawfully allowed to provide financial services
* Using investors’ funds for his own benefit, including the purchase of multi-million rand homes in Plattekloof and Hermanus, as well as two BMWs and a Jaguar F-Type V8 S convertible.
* Making false promises to the public, claiming that “investments” would yield interest returns of up to 84 percent.
* Using funds received from investors to pay other members.
Davids claimed his monthly expenses amount to R89 779, including R10 000 for entertainment, R15 000 for groceries and toiletries for a family of six, R2 000 for his daughters, tuition fees for his younger children, and installments for vehicles.
However, Judge Desai found that Davids had failed to make full disclosure of all property and to provide a sworn statement of assets and liabilities.
He referred to the AFU’s submission that less than R2 million remained in Platinum Forex’s Nedbank account when the curator took control of it, after more than R500 million had been deposited between August last year and June this year.
Desai added that the lack of disclosure made it difficult, “if not impossible”, for the court to find in Davids’ favour.
The application was dismissed.
The Daily Voice spoke to Davids at his home in Plattekloof on Sunday.
Dressed in a pink check shirt and chinos, Davids would only say: “This is a legal matter, I don’t want to comment. I don’t want to be interviewed.
“It’s Sunday and I’d like to have lunch with my family.”
Daily Voice
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