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Cape Town - A second suspect has been arrested in connection with an alleged Ponzi scheme worth R330 million that was committed through Platinum Forex Trading Group (PFTG), the Directorate for Priority Crime Investigation (Hawks) said on Tuesday.

In a statement, the Hawks said Derek Bredekamp, 52, appeared at the Bellville Specialised Commercial Crimes Court after being arrested by the Hawks' Serious Commercial Crime Investigation Unit.

Hawks spokesperson Captain Philani Nkwalase said: "It is alleged that Bredekamp, as the Marketing Manager of PFTG, colluded with the sole director of the same company, Colin Davids, thereby defrauding various investors to the entity. They allegedly took funds from investors and made investments in Forex markets and generate profit through the entity while some funds were used for personal gain."

According to Nkwalase, the capital investment would at a later stage be paid with profit back to their clients.

"Their client base of approximately 2,000 investors was allegedly offered an unrealistic return on their funds, which was characterised by a typical Ponzi scheme where the 'investments' of the latest clients would be used to pay the dividends to older clients. Consequently, they were additionally charged for contravention with the Reserve Bank Act, Act 90 of 1989," Nkwalase said.

The alleged offences were committed between July 2009 and July 2015.

Bredenkamp was granted bail of R15 000 bail and is expected back at the Specialised Commercial Crimes Court along with his co-accused Davids on 1 June 2018.

"Davids, his co-accused, was granted R100 000 bail after his arrest and court appearance on 22 June 2016," said Nkwalase.

African News Agency/ANA