Claims the fraudster still trades a sizeable portfolio from his prison cell and boasts to fellow inmates that he stole R3.3bn. From Moneyweb.
BHI Trust fraudster Craig Warriner has a phone in his cell, which he shares with about 35 other inmates, and continues to trade a portfolio worth north of R500 000.
That’s according to former cellmate Jacobus van Rensburg, who contacted Moneyweb with an interesting story to tell.
He and Warriner shared a cell in the A1 Section of ‘Sun City’ prison for several months and spent many hours together. Van Rensburg, a chartered accountant, was arrested in April 2023 on an assault charge and was released in March 2024, without being convicted.
Van Rensburg got into a scuffle outside a bar in Johannesburg and, though there were no serious injuries on either side, that landed him in prison for nearly a year – the result of a false arrest which he intends to pursue in court against the police.
Warriner, a St Stithians College Old Boy, turned himself over to the police in October 2023 while admitting to running a Ponzi investment scheme for more than a decade.
He initially waived his right to apply for bail and asked for a single cell because he feared for his safety. He later changed his tune, lawyered up and applied for bail – which was refused.
Last month he was sentenced to 25 years for fraud and operating an investment scheme without a licence.
Fear and sniggers
According to Van Rensburg, Warriner wanted a single cell because of threats to his life by one client who had invested R150 million and wanted his money back.
The smaller demands for repayment he could handle, but not a whale of this size, so decided to turn himself in and throw himself at the mercy of the justice system.
Around the prison yard, Van Rensburg tells us, Warriner would snigger at the press coverage on BHI Trust (he has internet access).
“They don’t know the half of it,” he told me. “He would brag to other inmates that he had stolen R3.3 billion and that some of the funds had not been tracked down.”
Still scheming …
He was a bragger, arrogant and always scheming his next move, according to Van Rensburg, who says he decided to tell his story to Moneyweb so that the victims of his fraud know the full truth, even if they don’t get their money back.
“I have someone close to me that lost a substantial sum of money through Warriner, so this is quite personal for me.”
Read: Family says Craig Warriner’s Ponzi destroyed them
Moneyweb reached out to Warriner’s lawyers for a response last week, but is yet to receive one.
The liquidators of the BHI Trust have so far clocked more than R1.6 billion in claims from around 823 investors.
Van Rensburg says Warriner claimed to inmates that the total number of investors was closer to 1 800.
An investigation by the Financial Sector Conduct Authority (FSCA) shows Warriner roped in R2.9 billion just since January 2020, but used less than 20% (R584 million) for legitimate trading.
The balance of roughly 80% was used to repay older clients and to fund his extravagant lifestyle.
Read: There’s almost nothing left in the BHI bank account
“When Craig was arrested, he was placed in my cell because there weren’t many white guys and I was a fellow white guy. In that section there were only three or four white guys. He came in with nothing: shorts, a pair of shoes, a backpack with two shorts, two T-shirts, no blanket,” says Van Rensburg.
“From the time he was arrested to the time I left in early March 2024, I tried to assist him to get into single cells. I went with him to Captain De Beer, who turned him down all three times. First time he asked to be moved for his safety, the second time because he said he wanted to work on his [legal] case and the third time because [he] was concerned about his safety again.”
Extravagant lifestyle
Warriner was “very arrogant, telling everyone how much he stole”.
“Most of his conversation was about how much he owned, what [car] he drove, how he spent his money,” says Van Rensburg.
“He told me about his daughter now living in London and about to marry [into] a very wealthy family. That’s from his first wife Michelle. He also has a son living in Vietnam.
“About his personal life, I got the impression he didn’t care much about anybody and didn’t receive any visitors for the first couple of months. He then contacted his ex-wife Michelle to get him money he was owed. He also contacted another guy called Nick for money and supplies.”
Cash buys you certain freedoms in prison, adds Van Rensburg.
Warriner refused to eat prison food, so needed money to buy KFC and other food from outside, and containers of meat, milk and apples from the prison kitchen.
Money is also needed for protection from gang enforcers, for toiletries, and for airtime. Though cell phones aren’t allowed, they are plentiful in ‘Sun City’ prison for those with sufficient cash to bribe the guards and smuggle them in.
Warriner managed to get an iPhone and maintain contact with the outside world. He apparently operates an EasyEquities account under his former wife’s name and would trade stocks from his cell. “The last time I saw him trade, he had an account with a balance of about R500 000 or R600 000,” says Van Rensburg.
‘Blackmail’
Warriner spoke of a client named Michael who he helped to ship more than $250 million overseas.
“He was trying to blackmail Michael from inside. He contacted him, telling him if he does not look after him financially, he would alert the authorities about the money he had moved overseas.
“I think there were a few key individuals he was protecting and that is why he is not suffering now as much financially.”
Warriner was “a big bragger, always talking about his next move”.
“He was sentenced to 25 years, but with good behaviour he might walk in four or five years. That’s what he says his lawyers told him.
“I know there were two fixers [in prison] that were trying to get hold of Craig and assist him with bail at the Palm Ridge court.”
Warriner confided to Van Rensburg that he hid money before handing himself over to police and believes this is one of the sources of his funds in prison.
Prison conditions
“Prison is horrific. There’s no toilet paper, no baths, no beds [and] the officials are so corrupt. It cost me R1 000 a month to get basics like toiletries, decent amounts of food, and small privileges like being able to have a hot shower.
“You have to pay for protection. You have to pay the warders who are supposed to watch you. You have to pay them about R100 a week so you can be in touch with your family and your lawyer. There’s no phone in prison; the section I was in had no landline.”
Van Rensburg says he nearly died from sepsis as a result of appalling sanitary conditions. He was rushed to the Chris Hani Baragwanath Hospital intensive care unit, but asked for additional care from his neurologist at Life Fourways Hospital.
He was transferred to the private hospital but ended up being charged R22 000 a day for prison guarding.
Warriner also complained of poor medical health in prison and is reportedly overweight. Van Rensburg had to assist him to walk to meet his lawyers and other visitors when they arrived for meetings at the prison.