The founder and suspected mastermind of an online Ponzi scheme called e-creator, under which unsuspecting people across the country lost over US$1 million, was denied bail for the weekend yesterday after appearing in court facing fraud charges.
Zhao Jiaotong (39) appeared before Harare magistrate Mrs
Marehwanazvo Gofa, who remanded him in custody to Monday for his bail
application.
The court heard that
in January this year, Zhao hatched his plan for the online investment Ponzi
scheme called e-creator.
It is alleged that on February 7 and in connivance with
Trymore Tapfumaneyi, Justin Kuchekenya, Bily Thomas Syedou, Abraham Mutambu and
others who are still at large, Zhao registered a company with the Zimbabwean
Registrar of Companies styled E-Creator Electronic Commence Private Limited
under company registration number 2853/23, with its offices in room 15 and 16
on the 10th Floor of Joina City Building, Harare.
The court heard that Zhao went on to launch the company as
an online e-commerce operator.
Between February and July this year, he misrepresented to
unsuspecting people that if they invested with the company, they would enjoy
huge monthly profits depending on the amount invested.
Many people across the country flocked to the company and
some invested up to US$1 000 through EcoCash numbers supplied on the platform
by Zhao.
To make the company more attractive and appealing to
unsuspecting people, Zhao used the media, including the national television
broadcaster ZTV, social media and Zimbabwean socialites Tarisai Cleopatra
Munetsiwa, also known as Madam Boss, and Admire Mushambi, also known as Mama
Vee, to advertise the company business on their social media platforms in order
to gain more subscribers.
The company employed
various agents in major towns throughout the country in order to market the
business.
On July 3, some of the complainants encountered challenges
in accessing their funds and approached the company for clarifications.
Mutambu assured the complainants that the problems they
were encountering were a result of a system upgrade that was preventing them
from accessing the funds.
He further advised them that the situation would normalise
in due course.
On July 5, the
complainants were shocked to realise that E-Creator Electronic Commerce
(Private) Limited had sent a notice on its website that it was no-longer
operating.
A passport size photo of Zhao was posted on the website
with a message that he was the one who took the complainants’ money and fled to
China.
The complainants also visited Zhao’s known offices and
found that they had been permanently closed and there were no signs of business
operations.
Furthermore, they got in formation that Zhao had actually
withdrawn the money and fled.
The complainants
suffered an actual prejudice of around US$1 million and nothing has been
recovered. Herald
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