WASHINGTON—Subcommittee on Government Operations Chairman Pete Sessions (R-Texas) today announced a hearing on “Fraud Prevention: Understanding Fraud in Federally Funded Programs Run by the States” as part of the House Committee on Oversight and Government Reform’s larger investigation into curbing federal and state fraud. During the hearing, members will examine why fraud exists in federally funded state programs and how states use unlimited or matching federal program funding to maximize state resources instead of efficiently funding the programs they are designed for, which poses risks and challenges to detecting, preventing, and addressing fraud. Members will also analyze the outdated methods and technology states use to detect fraud and assess how to make states aware of and employ improved tools, techniques, and data to combat fraud.
“Fraud runs rampant when states are…
THE BHI TRUST PONZI SCHEME (SOUTH AFRICA)
Date: Ongoing updates through February 2026 Perpetrator: Craig Warriner (Principal), with alleged co-conspirators
Case Description: The BHI Trust scandal remains one of South Africa’s most devastating financial crimes, involving the loss of between R1.9 billion and R3 billion. Craig Warriner, the “genius trader” behind the trust, turned himself in during late 2023, but the legal and recovery battles reached a fever pitch in 2025 and 2026. Warriner operated the trust as a textbook Ponzi scheme, utilizing “Old Boy” networks and high-profile brokers to lure in pensioners and high-net-worth individuals with promises of 20% annual returns.
In early 2025, the National Prosecuting Authority (NPA) faced heavy criticism for “provisionally withdrawing” charges against alleged co-conspirators Michael Haldane and Sona Pillay. However, civil recovery efforts by joint trustees have continued into 2026, aiming to claw back hundreds of millions in “fictitious profits” from early investors to redistribute to those who lost everything. The case is a masterclass in the failure of fiduciary duty; the FSCA eventually banned several advisors for up to 30 years for peddling the unlicensed scheme despite clear red flags, such as the lack of a website, the absence of regulated financial reports, and a fee structure that was triple the industry average.
Link to Original: Moneyweb – BHI Trust Scandal Deep Dive