BHI Ponzi – Haldane debarred for 30 years by the FSCA

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.Investment advisor Michael Haldane – a central figure in the BHI Trust Ponzi scheme – has been debarred from rendering financial services for 30 years. .The Debarment Order reads: "With immediate effect, the Financial Sector Conduct Authority (Authority), in terms of section 153(1) and (2), prohibits MR. MICHAEL HALDANE a key individual, key person and representative, for a period of 30 years from: .(a) providing, or being involved in the provision of, all financial products or financial services, defined in all financial sector laws for which the Authority is the responsible Authority under Schedule 2 of the FSR Act (section 153(2)(a) of the FSR Act); (b) acting as a key person of any financial institution as defined in the FSR Act (section 153(2)(b) of the FSR Act); and (c) providing services relating to financial products or financial services, as defined in the FSR Act, whether under outsourcing arrangement(s) or otherwise (section 153(2)(c) of the FSR Act). . ALTERNATIVELY.With immediate effect, the Authority in terms of section 14A of the FAIS Act, debars MR. MICHAEL HALDANE a key individual, key person and representative, for a period of 30 years from rendering financial services as defined in the FAIS Act.".Haldane (55) was granted bail in June this year (2024) – after he turned himself in – and was charged with fraud and money laundering..According to an affidavit provided by the prosecution, the BHI Trust scheme lured investors with promises of high returns, often exceeding 10%, by allegedly investing in high-yield, low-risk financial instruments. However, the scheme was a classic Ponzi operation, using funds from new investors to pay returns to earlier investors, thus creating an illusion of profitability and sustainability..According to the affidavit, Haldane's family trust, the Open Range Family Trust, holds assets that include a family home valued at about R4 million with household contents worth R1.5 million, three motor vehicles collectively valued at R1.4 million; an apartment in Malta valued at €300,000; and shares worth €205,000..Haldane attended high school in Bryanston and completed his tertiary education in KwaZulu Natal. He has worked in various companies within the insurance and medical aid industries before forming Global and Local Financial Consultants CC in 1999. .Despite selling Global and Local Investment Advisors (Pty) Ltd in December 2023 due to negative publicity from the BHI Trust scandal, Haldane maintains his innocence, and has emphased his cooperation with the FSCA and the liquidators of BHI Trust..The FSCA has also debared Mauro Forlin, the former managing director of Global & Local Asset Management. .Read more: BHI Ponzi: Michael Haldane and Sona Pillay granted bail.According to CITYWIRE South Africa, Forlin began his career in 1994 as administrative departmental head at a South African unit trust management company. He then moved to investment banks and asset managers, and finally built his own client investment consulting business. In 2009, Forlin merged his business with Global & Local. He holds a postgraduate diploma in financial planning and an international capital markets qualification through the London Securities Institute (now the CISI) and is a certified financial planner..The debarment orders were welcome by veteran fraud investigator Bart Henderson who has been fighting for justice for many of the victims.."I think I speak for the almost 400 victims in two WhatsApp groups when I say that while the FSCA's sanctions against Haldane and Forlin are welcome, it is a pyrrhic victory, too little, too late, and at a cost to the victims, that for a great many has been devastating.".However, he adds that "serious questions" need to be asked as to why it took the FSCA six years to investigate the BHI Ponzi.."Especially in light of the fact, adding salt to the wound, that it appears the FAIS Ombudsman cynically, has almost universally declined all victims claims leaving many destitute and in the hands of a liquidation process, the cost of which will simply further erode the value of recoverable assets over time, and in all probability take years to finalise, to the claimant's detriment.."Victims must be provided with answers as to where their money went, and who were Haldane and Forlin's enablers in the laundering of the proceeds from the crime that BHI in all its various iterations appears to have been.".– See the FSCA Debarment Orders here:.Download PDFDebarment Order_ Mr Michael Haldane_ 20 September 2024(1) (1)Download.Download PDFDebarment Order_ Mr Mauro Forlin_ 20 September 2024Download.Read also.BHI Ponzi : Arrests of key figures in mega-fraud caseBHI Ponzi kingpin Craig Warriner sentenced to 25 yearsBHI Ponzi: The "biggest heist" ever from a Ponzi collapse?

BHI Ponzi – Haldane debarred for 30 years by the FSCA

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