A Port Elizabeth man accused of orchestrating a fraudulent R23m foreign exchange investment scheme appeared briefly in the Port Elizabeth Commercial Crimes Court and was released on R10,000 bail on Tuesday.
David Wilmot, of Rocklands, stands accused of fraud and contravening various financial acts after he promised to invest his clients’ money on foreign exchange markets.
Instead, Wilmot allegedly invested about R2.5m, with the remainder of the money used to pay out fictitious profits and fund his lifestyle.
An analysis of his trading accounts showed that none yielded a profitable result, according to the charge sheet.
Investor agreements were either structured as fixed-term loans to Wilmot or his company, Novashore, on the basis that he use the funds on the forex markets.
The state alleges Wilmot created the impression to investors that he was successful and that he was making large profits for his clients.
“The accused continuously assured his investors that their investments were safe and were increasing in value by providing them with fictitious documents as proof,” the charge sheet states.
Wilmot was charged after an investigation by the Financial Services Board (FSB).Between 2009 and 2015, the state alleges, Wilmot received R23,273,537 and that only R2,402,558 was transferred to forex trading accounts.
“The accused offered various false explanations which were offered as excuses why he was unable to pay investors their returns after the FSB investigation was concluded and these excuses convinced the investors not to request repayments of their investments.”
In an affidavit handed to the court on Tuesday, Wilmot said he lived at his Rocklands address and would not flee, nor interfere with state witnesses.
The case was postponed to September 3.