BHI 2.0: Joburg broker disappears with R30m in alleged Ponzi scam

Key topics:Johannesburg broker accused of defrauding over 100 investors.Victims were friends, family, and single parents.Case exposes growing trend in elite financial scams..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.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Kerry Lanaghan.Listen to this story instead:.A Johannesburg-based broker, Mark Kretzschmar, is at the centre of an unfolding financial scandal after allegedly disappearing with over R30 million of investors' money in what appears to be a Ponzi-style investment scheme. His clients, many of whom were close friends, family members, and single parents, are now left financially devastated and demanding answers.A web of trust and betrayalAccording to a report on the case by News24, Kretzschmar built a network of clients over several years, primarily through personal relationships and word-of-mouth referrals in Johannesburg’s northern suburbs. Presenting himself as a savvy investor with access to offshore opportunities, he allegedly promised above-average returns while positioning himself as someone with integrity and experience.Victims told News24 that Kretzschmar often emphasised the safety of the investments, citing conservative strategies and regular interest payments. He assured clients their funds were secure and even produced account statements supporting his claims. However, it now appears that these statements were falsified or misleading.“He was like family,” said one investor, a single mother who had entrusted her savings to Kretzschmar. “We had known him for years, and I never thought to question what he was doing with the money. Now I’ve lost everything.”Pattern of deception emergesConcerns surfaced earlier this year when payments were delayed and communication became sporadic. Investors who attempted to withdraw funds were met with excuses, ranging from banking delays to offshore transfer issues. As suspicion grew, Kretzschmar stopped responding and has since vanished, according to multiple complaints filed with the police.Reports suggest that more than 100 investors may have been affected, and the total loss is believed to exceed R30 million. Most victims reportedly never signed formal contracts or verified Kretzschmar’s financial credentials, trusting him due to long-standing personal ties.It has since emerged that Kretzschmar was not registered with the Financial Sector Conduct Authority (FSCA) as a licensed financial service provider. This has raised further concerns about the lack of oversight and investor protection in South Africa’s financial advisory space.Police investigation underwayThe Gauteng Commercial Crimes Unit has opened an investigation and is currently tracing Kretzschmar’s movements. Authorities have appealed to other victims to provide documentation and account details to support the probe.“We are treating this as a serious case of suspected fraud,” a police spokesperson confirmed. “Initial reports indicate the use of classic Ponzi scheme methods - using new investments to pay earlier investors, creating the illusion of success.”Not an isolated caseThe Kretzschmar case has revived memories of the massive BHI Trust Ponzi scheme, which collapsed in 2023, affecting more than 1,800 investors and involving nearly R3 billion. That scheme, orchestrated by Craig Warriner and enabled by high-profile financial advisors, also thrived on trust, social networks, and the allure of consistent returns.While BHI operated on a larger scale, the fundamentals of deception and regulatory blind spots are similar to the Kretzschmar case.A growing trend among Johannesburg’s elite circles?Observers have noted a worrying trend: many recent Ponzi-style scams originate within tightly-knit communities of former private school pupils, professionals, and old boys’ networks in Johannesburg. These social structures offer a layer of built-in trust that scammers can exploit, making it easier to raise large sums without rigorous scrutiny.“What we’re seeing now is the weaponisation of social capital,” said one financial analyst. “People let their guard down when the broker is ‘one of us.’ That’s how these schemes spread so quickly and go undetected for so long.”Victims face a long road aheadMany of Kretzschmar’s clients are left financially crippled, with slim prospects of recovering their funds. Legal experts say that most victims have limited recourse without formal investment contracts or regulatory protections.One investor summed up the collective frustration: “We weren’t just robbed of our money - we were robbed of our trust.”As the investigation continues, the Kretzschmar case is a stark warning about the importance of verification, regulation, and scepticism - even when the person offering an investment opportunity is a familiar face.

BHI 2.0: Joburg broker disappears with R30m in alleged Ponzi scam

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