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Yeukai Karengezeka
Court Correspondent
The High Court has acquitted Spartan Security (Pvt) Ltd and its director, businessman Luka Ignatius Fabris, of a US$1 million fraud conviction.
The decision overturned a ruling by the lower courts in June, which found them guilty of defrauding Mrs. Leigh Ann Patricia Rudland (53) in a failed cattle ranching business deal.
The appeal was heard before a two-judge bench comprising Justice Happias Zhou and Justice Benjamin Chikowero, who noted that the prosecution failed to prove criminal intent or deception of the appellents.
“The appeal is allowed. The conviction is squashed and the sentence has been set aside.
“The first accused, Spartan Security, is found not guilty and acquitted, and so is the second accused Lucas Fabris,” read the order.
Fabris and Spartan Security appealed the conviction, arguing that no fraud had been committed.
The appellants were represented by their lawyers Mr Joseph Nemaisa and Mr Tawanda Zhuwarara.
Harare magistrate Mrs Feresi Chakanyuka had fined the company and Fabris US$300 each. Fabris was given a wholly suspended sentence of 12 months in prison on condition that he does not commit a similar offence within the next five years.
Initially Fabris was convicted of US$1 million.
However, magistrate Chakanyuka ordered Fabris to restitute Mrs Rudland US$460 000 or equivalent in local currency by July 31 as it was the outstanding balance.
It was the State’s case that in 2019, Fabris, acting on behalf of his company, approached Ms Rudland and told her that the company was involved in a profitable cattle ranching business.
He got her to invest into the business and promised that she would get 2 percent of her total investment every month but the deal never materialised.
Mrs Rudland, through her lawyers on March 21, 2019, transferred Z$4,8 million to him.
The two orally agreed that the money was equivalent to US$1 million at the prevailing bank rate at that time.
However, after Ms Rudland made her investment, she only received US$540 000 in total returns and thereafter, Fabris stopped giving her any money.
In his defence, Fabris agreed that the two had an oral arrangement based on trust to change a bank transfer into cash and that the value of the cash fell because of inflation.
He denied the fraud charge, arguing that he paid Ms Rudland all her money.
He contended that the deal had nothing to do with any investment and was simply an arrangement with Spartan for Ms Rudland to convert a Z$4,8 million electronic transfer.
Fabris said Ms Rudland had to collect her cash in batches and by the time she collected the last batch of, her money had lost value due to inflation.
She started to demand compensation for the inflation-induced loss, which the directors of the company declined as it would amount to an unjust enrichment of the complainant.
The whole trial consisted of a single witness who was Mrs Rudland.
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