Online Reporter
Yeukai Karengezeka-Chisepo
Court Correspondent
Two Chinese nationals have appeared before the Harare Magistrates’ Court facing fraud and money laundering charges involving approximately US$650 000 allegedly obtained through a bogus investment scheme.
The accused, Chen Dehua (57) and Kang Lyuyun (55), both of Borrowdale, appeared before Harare regional magistrate Mrs Jesse Kufa.
They were each granted bail of US$1 000 and remanded to a later date. The complainant in the matter is Shigang Li.
Prosecutor Mr Lawrence Gangarahwe alleged that between October 1 and October 31, 2022, the two accused allegedly devised a plan to defraud the complainant by persuading him to invest in a proposed lithium trading company.
The court heard that the pair allegedly represented to the complainant that if he injected RMB5 million (about US$739 000) into the venture, he would acquire a 25 percent shareholding in the company.
Acting on the representations, the complainant allegedly transferred RMB4.5 million into a bank account belonging to Shenzhen Shenka Te and controlled by Kang.
However, prosecutors allege that after receiving the funds, the accused failed to register the complainant as either a shareholder or director of the company as promised.
It is further alleged that the complainant never received the stake he had paid for, resulting in substantial financial prejudice.
The court heard that on June 17, 2026, detectives from the CID Asset Forfeiture Unit received information regarding the whereabouts of the accused persons and arrested them at the Golden Peacock Hotel in Harare.
The State further alleges that after obtaining the funds through fraudulent means, the accused converted and transferred the money while knowing it constituted proceeds of crime.
According to the prosecution, the transactions were intended to conceal or disguise the illicit origin of the funds and to shield the accused from the legal consequences of their actions, in contravention of the Money Laundering and Proceeds of Crime Act.
The total amount allegedly prejudiced is RMB4.5 million, equivalent to approximately US$650 000, and no recoveries have been made.
