The Port Elizabeth Commercial Court sentenced David Wilmot to 15 years’ imprisonment after he pleaded guilty to fraud, money laundering and breach of the financial advisory and intermediary act.
Between 2010 and 2015, Wilmot lied about investing money in foreign exchange markets via his company Nova Shore Holdings, according to local media reports.
He stole ZAR23.2m (£1.2m, $1.5m, €1.4m) from 48 people, and only used ZAR2.4m as investments.
The remaining ZAR20.8m was used to fund his lifestyle.
Lies and fake documents
Investing in foreign exchange markets has been popular for retail investors in South Africa, who wish to put their money into so-called hard currency so they can better ride out the volatility and weakness of the rand.
Wilmot operated the Ponzi scheme through at least four bank accounts belonging to him, Nova Shore and his relatives.
In the meantime, Wilmot reassured all his ‘clients’ that their money was safe and growing in value, and even produced fake documents to prove his claims.
Attorney Chris Arnold told the South African court that liquidators were not able to trace investors’ funds.
