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.