A registered financial advisor and a close friend gave him assurances that the investment in Craig Warriner's BHI Trust was safe, according to an investor who lost R6 million through it. Furthermore, the Financial Sector Conduct Authority (FSCA) supported the scheme.

As disclosed last week, Warriner stole millions from investors in a Ponzi scheme that was akin to the one Bernie Madoff used to defraud investors. This was accomplished through the use of the BHI Trust.

In the Palm Ridge Magistrates' Court in Katlehong, Warriner represented himself after turning himself in to the police.

In a correspondence released by Cawood Attorneys Incorporated, Warriner affirmed his intention to stay his own attorney.

Furthermore, he attested that he forfeited his right to request bail and is still being held without charge.

According to preliminary data, Warriner effectively stole money from Peter to pay Paul for BHI Trust by using a Ponzi scheme framework.

According to City Press, more than 2,000 clients made over R3 billion in investments through the scheme.

It also stated that a lot of people put a lot of money into the scheme, including prominent financial advisors, and that many investors trusted Warriner with their life savings.

The situation is especially troubling because it affects many more people than just the people who have lost money.

According to David Shapiro of Sasfin Securities, it will be challenging for individuals who have lost money to recover it due to the intricacy of the case.

It's also likely that investors who have gotten any kind of distribution from Warriner in the previous fifteen years will need to return their funds.

This is identical to what transpired in the Bernie Madoff case, where investors were made to reimburse him for the money he made illegally.

An investor who lost R6 million in the fraudulent scheme was interviewed by BizNews; they wished to remain anonymous.

The investor claimed to have learned about the BHI Trust from a close friend who had been a long-time investor and reported positive returns for both himself and his family.

In addition to advising him to invest in BHI, his financial advisor reassured him that it was a secure choice. The advisor made investments in the Trust using both his and his family's funds.

Based on independent investigation, the investor discovered that numerous other asset management firms holding funds in the BHI Trust were also registered with the FSCA.

Documentation viewed indicates that the investor's money was kept in a JSE Trust Account with a broker who was registered with the JSE.