Colin 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.
The New Direction Church pastor, aged 49, is said 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, a total sum of R329m went into Davids’ accounts from over 2 000 investors between November 2009 to July 2015.
Last July, the Asset Forfeiture Unit (AFU) seized assets worth R138m from Platinum Forex.
On Thursday, the Cape Town High Court said that of the over R300m that was initially invested in his company, only about R100m remains, and ruled that a curator oversee the process of distributing frozen funds to investors.
In the ruling, the judge conveyed his sympathy to investors who had simply wanted a good return on their hard-earned money, he further thanked them for their patience and warned the general public to be wary of similar schemes.
The Judge also praised the AFU for their work on the case.
According to the Hawks, investigations against Davids by the Serious Commercial Crime Unit are currently ongoing and are at an advanced stage.
Davids remains out on a R100 000 bail after he was arrested in June 2016 on charges of contravening the FAIS Act and Banks Act.
He is due to make a follow-up appearance in the Bellville Magistrates’ Court on 27 September.
The father of three has denied the allegations against him, insisting his business is legitimate.
The controversial pastor owns two multi-million rand homes, a luxurious mansion in Plattekloof and another house in Hermanus, and several luxury cars.
However, in September last year, Deputy Director of Public Prosecutions Leonardo Goosen said the scheme run by Davids was “hopelessly insolvent” and that the accused had been trading recklessly.