Court orders pyramid scheme scammers to refund US$...

Court orders pyramid scheme scammers to refund US$81 000

But victim will have to first find the directors of the company who seem to have fled the country

Zim Now Writer

The High Court of Zimbabwe has ordered micro-finance company Inter Crest Capital to repay a total of US$81,139 to investor Auxilia Goromonzi. The ruling comes after Goromonzi alleged she was defrauded in a foiled pyramid scheme.

Goromonzi invested a significant sum of US$27,000 with Inter Crest Capital in 2022, followed by an additional US$67,200 in January 2023. According to her court filings, she was promised a lucrative monthly return of 10% on her investments. The agreement also stipulated that Goromonzi could access her full investment amount upon request.

However, when Goromonzi attempted to withdraw her funds, Inter Crest Capital allegedly failed to uphold its end of the bargain. The company's directors, Precious Kwashirai and Roselinda Chopera, are suspected to have fled the country and are reportedly living in the United States and the United Kingdom respectively.

Due to Inter Crest Capital's failure to appear before High Court Judge Justice Joseph Mafusire, a default judgment was issued on July 4, 2024. The order compels Inter Crest Capital and its directors to collectively repay Goromonzi the full sum of US$81,139. This amount includes the initial investment and accrued interest calculated at a rate of 10% per month from the date of the court order. Additionally, Inter Crest Capital is liable for all court costs associated with the case.

Goromonzi, represented by her lawyers, is urging the Reserve Bank of Zimbabwe to launch an official investigation into Inter Crest Capital's operations. This move suggests Goromonzi's suspicions that the company may have been involved in a pyramid scheme, a fraudulent business model that promises unrealistic returns based on recruitment of new investors.

The RBZ is the principal regulatory body for financial institutions in Zimbabwe and is responsible for ensuring the stability and integrity of the financial sector. An investigation by the RBZ could potentially uncover further details about Inter Crest Capital's activities leading to legal action against the company's directors.