A pyramid scheme promising to double contributors’ money in
days backfired for unsuspecting fortune-seekers who lost close to $2 million
when the inevitable collapse occurred.
The suspected conmen are siblings Romeo (25) and Tinashe
(29) Samhungu.
The brothers devised a plan to swindle people using the
pyramid scheme and promised investors lucrative returns over very short periods
of time.
Pyramid schemes work by giving older investors money from
new investors and rely on far more newcomers joining at each step than people
already in the scheme; they collapse when there are not enough newcomers.
To lure investors, the brothers allegedly advertised the
scheme on social media platforms saying they were offering 100 percent profit
to anyone who paid into their EcoCash account using their merchant code.
Romeo and Tinashe initially appeared in court on Tuesday
before Mrs Barbra Mateko charged with fraud after they allegedly swindled a
Harare woman, Gina Makosa, of $33 000.
They were granted $500 bail each. The pair was however, back in court yesterday facing fresh
charges of a similar nature.
They reportedly swindled several victims of $1 552 427
through the pyramid scheme before using the money to buy forex on the black
market.
This time the brothers were not so lucky as they were
remanded in custody to today for bail ruling after prosecutor Mr Lancelot
Mutsokoti strongly opposed bail.
Mr Mutsokoti argued that the State had a strong case
against the brothers who faced a serious offence and were likely to face a
prison term if convicted, hence this would induce them to abscond.
Mr Mutsokoti added that the pair were also wanted by other
police stations following reports by several others who have complained they
were scammed.
In response, Romeo and Tinashe argued they were proper
candidates for bail saying they were of fixed abode. They distanced themselves
from the criminal act arguing they were also victims of the pyramid scheme
having invested their money.
After hearing submissions from both parties, magistrate Mrs
Barbra Mateko rolled over the matter to today for ruling.
When they appeared in court on Tuesday, the brothers were
being accused of receiving $33 000 through their EcoCash merchant code 017223
from Makosa.
After depositing the money, Makosa is said to have called
the two who promised to pay back her full amount plus profit the following day.
The pair, the court heard, switched off the mobile phones
they were using to communicate with her and also blocked their merchant line.
After one week, Makosa tried to call them but they were unreachable prompting
her to make a police report.
On the fresh charges yesterday, it is alleged that between
April 1 and 20, Romeo and Tinashe hatched a plan to defraud unsuspecting
individuals and posted an advert on Facebook through their company Getrich
Investments offering 100 percent profits to anyone who would deposit money
through their EcoCash merchant number.
However, after receiving the money from several people,
they allegedly switched off their mobile phones. Herald
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