Businessman Michael Smith faces over 40 fraud char...

Businessman Michael Smith faces over 40 fraud charges

Zim Now Writer

Harare businessman Michael Smith is facing 40 charges of defrauding his shareholder and co-director, Michael Asher. The duo was the joint owners of MA Auto Spares.

Smith, who is currently out on ZWL$100 000 bail, was initially brought to court in February this year for allegedly defrauding Asher of over US$21 383 and R124 000.

However, further investigations have unearthed more incriminating evidence against Smith, leading to the additional charges.

The State alleges that Smith, during the Covid-19 pandemic when travel restrictions were in place, engaged in a series of fraudulent activities, including:

Failing to disclose to Asher that MA Auto Spares was making payments to its South African suppliers through a third-party company, Many Procurement (Pvt) Ltd.
Misrepresenting ownership of company resources, including vehicles, tents, and chairs, and then selling them for personal gain.
Causing MA Auto Spares to suffer financial losses exceeding R100 000 due to his misrepresentations.

Specific instances of Smith’s alleged fraudulent activities include:

Importing two tents using MA Auto Spares resources and selling them to Ms. Horsley for US$1 800.
Using a similar modus operandi to import a station wagon rear bumper and RHS carrier, resulting in the customer directly paying R24 259.83 into Mant Procurement’s FNB account.
Selling the company's Toyota Land Cruiser to his son Trevor for US$7 500 but only receiving US$2 000 and allowing him to take ownership before full payment was made, causing MA Auto Spares a loss of US$5 500.
Failing to account for a US$10 000 loan advanced to the company in November 2020.
Engaging in undisclosed business transactions involving vehicle repairs and services without Asher's knowledge.

The case is scheduled to resume on November 24, 2023.