adminThe duo misrepresented to people that their club had the capacity to pay out interest rate of 500 percent per every amount invested with the club for a period of 42 working days.
Matizanadzo last week appeared in court before magistrate Mr Donald Ndirowei charged with fraud while Mupinuri is still at large. She was remanded to July 25 on US$500 bail.
Mr Musindo Hungwe of Kadzere, Hungwe and Mandevere law firm is appearing on her behalf. According to the State, the club has been in operation since January this year.
Appearing for the State, Mr Tungamirai Chakurira alleges that the duo hatched a plan to defraud unsuspecting potential investors and formed the club. To be a member, people were required to pay US$20 as joining fee and monthly subscription of US$10.
The club had a membership of about 2 000 and each member was given a membership card, it is alleged.
The pair misrepresented to people that their club had the capacity to pay out interest rate of 500 percent per every amount invested with the club for a period of 42 working days.
Acting on the misrepresentation, the “investors” allegedly invested varying amounts of cash ranging from US$40 to US$1 000 which amounted to US$1 040 000.
After receiving the money, it is alleged, Matizanadzo and Mupinuri converted the money to their personal use instead of investing it.
The offence came to light when the investors failed to get their money from the club as per their agreement.
According to the State, investigations revealed that the club did not have the capacity to operate a money club since it does not have any assets or security to cushion depositors’ funds. It is further alleged that the duo was operating the club without a bank account and that they had since vacated their business address.
Online Reporter