‘Ponzi’ pastor’s mansions set to go on auction

BY 

On 

May 29, 2017
‘Ponzi’ pastor’s mansions set to go on auction

UNDER THE HAMMER: Pastor Colin Davids is accused of running a multi-million rand ponzi scheme

Two mansions of the 'Ponzi pastor' set to go on auction.

The two larney houses of controversial Cape Flats pastor Colin Davids, accused of running a multi-million rand Ponzi scheme, will go on auction next month.

Davids, 49, of the New Directions Church in Parow, lost his first round in court last month after a judge ordered R100 million in cash be paid back to his “investors”.

The ClareMart Auction Group will now take the houses, a mansion in Plattekloof and another home in Hermanus, to auction, reports Weekend Argus.

Davids, the director of Platinum Forex Group, faces charges of fraud, contravention of the Financial Advisory and Intermediary Services Act (FAIS), for which he was not registered or licensed to perform.

Last month, the Western Cape High Court said of the over R300m that was initially invested in Davids’ company, only about R100m remains.

It ruled that a curator oversee the process of distributing frozen funds to investors.

ClareMart said it had been instructed by KPMG to take two properties to auction and that these properties were part of a “high profile court appointed curatorship”.

The first house to go under the hammer will be Davids’ larney six-bedroom home in the Overstrand, described as having “spectacular views of the Hermanus coastline”.

The house is set on a 728m² erf and has been described as “an entertainer’s delight”.

‘AN ENTERTAINER’S DELIGHT’: The six-bedroom Hermanus mansion.

“On the ground floor, the entrance hall leads to an informal lounge area, two bathrooms, a store room and five bedrooms” – one of which has an en-suite bathroom with walk-in-closet.

There’s also an “open-plan lounge/dining room as well as the entertainment room, kitchen, laundry, guest toilet and TV room”.

The house also has staff quarters and a double garage.

The Plattekloof mansion is described as “among the best that Cape Town’s northern suburbs has to offer”.

Built on a 1700m² erf, the double-storey house boasts five bedrooms, three bathrooms, a study, pool and outdoors entertainment area, “plus three garages ensure ample secure parking” among others.

‘AMONG THE BEST IN CITY’: The pastor’s 1700m² erf Plattekloof house.

Davids is alleged to have run a scheme where investors were promised “impossibly” high returns, and were repaid with investments from newcomers.

According to an auditor’s report, R329m went into Davids’ accounts from over 2000 investors between November 2009 to July 2015.

Last July, the Asset Forfeiture Unit (AFU) seized assets worth R138m from Platinum Forex.

Davids is out on R100 000 bail and will appear in Bellville Magistrates’ Court on 27 September.

Recommended for you