Michael Haldane, founder of Global and Local, has been granted permission by the Palm Ridge Magistrates Court to travel to Tokyo, raising concerns about potential access to investor records tied to the BHI Trust Ponzi scheme.
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.
By Chris Steyn
There are fears that Michael Haldane, the founder of Global and Local, and one of the primary accused in the BHI Trust Ponzi scheme, could gain access to investor records believed to be in the hands of an associate who has fled South Africa.
This after Haldane was controversially granted permission by the Palm Ridge Magistrates Court yesterday (Wednesday) to travel to Tokyo in November to visit a sick relative.
Haldane and Sona Pillay, Managing Director of Rubicon Trust, have been charged with fraud and money laundering in connection with the scheme, which is alleged to have unlawfully siphoned hundreds of millions from investors over the past decade.
In his comment to BizNews, veteran forensic investigator Bart Henderson – who has represented many of the investor-victims – stated: “It is outrageous. This is an extremely serious fraud perpetrated against many hundreds of investors. It is an extremely serious economic crime impacting thousands.
“A key suspect in the scheme, Katrinos (Kaddy) Cost, according to the now convicted Craig Warriner, has fled South Africa and is overseas according to multiple sources and evidence. He (Cost) is believed, according to Warriner, to be in possession of all BHI investor records.
“Billions of rands in investor funds are missing. It stands to reason this money has been frittered away, stolen and laundered. This is the only logical conclusion. Cost is a known extremely close associate of both Haldane and Pillay.
“Giving Haldane permission to travel overseas for any reason may very well serve to severely prejudice the case against him in that this travel provides him direct access to Cost and the BHI evidence allegedly held by Cost.
Meanwhile, Africa’s largest privately owned investment management company Allan Gray says it reviews its processes and procedures on an ongoing basis to safeguard all investments that are administered via its investment platform.
This was in response to a question from BizNews as to whether it had changed any of its processes in dealing with financial service providers following the BHI Ponzi scandal.
Last year, concerns were raised about Allan Gray’s relationship with Global & Local because the two companies had – in September – co-hosted an Investment Seminar, headlined by Allan Gray Portfolio Manager Sean Munsie and Global & Local MD Mauro Forlin. Haldane was also present at the seminar. Haldane’s company aggressively marketed Warriner’s BHI Trust, and on occasion recommended they move funds away from regulated investments into the Ponzi scheme, an unregulated trust.
Haldane and Forlin have since been debarred for 30 years by the Financial Sector Conduct Authority (FSCA), and Warriner has been jailed for 25 years.
Giving BizNews an update in an email this week, Allan Gray’s Head of Retail Tamryn Lamb stated: “In November 2023 we gave notice to Global & Local that we would be terminating their contract, which had allowed them to use our investment platform to administer their clients’ regulated investments. This was soon after it emerged and they confirmed they had clients invested in or with BHI Trust, an unregulated investment, which has been provisionally sequestrated following fraud being uncovered.
“The authorities’ investigation into BHI Trust, as well as regulated entities that may have promoted the products of BHI Trust, was underway at the time. While the details of this investigation were not disclosed, given the ongoing uncertainty and unclear timelines to resolution, we took the decision to terminate rather than await the outcome. Prior to that point, from when we became aware of fraud at BHI and the possible exposure of Global & Local’s clients to the structure, we had been actively monitoring the situation.
“As would be the case with most financial advice practices, Global & Local made use of a number of different service providers, including the Allan Gray investment platform to administer their clients’ regulated investments – excluding BHI, which was unregulated.
“The Allan Gray investment platform provides administrative services to financial advice practices who have a contract with us for these services. Through the provision of these services, one of our primary responsibilities and key concern, is to safeguard all investments that are administered via the Allan Gray investment platform. In this regard, we review our processes and procedures on an ongoing basis.”
Read also:
