Woman in $1m Ponzi scheme fraud

A HARARE woman who duped countless investors of $1 million in an interest-generating, Ponzi scheme has been hauled before the courts facing fraud charges.

Wendie Matizanadzo, 38, was not asked to plead when she appeared before magistrate Don Ndirowei.

The court heard that Matizanadzo, was chairperson of a club which operated as Milestone Rotating Savings Club and among some of her duties were to make cash payouts to depositors upon maturity of their investments, making good use of the depositors’ money and marketing the club’s operations.

The club, which had a membership of 2 000 people, had been in operation as a rotating savings club since January 2013 and to be a member, one would pay $20 joining fee and monthly subscriptions of $10 for two months.

It is the State’s case that Matizanadzo and her partner ,who is also a co-founder and is still at large, planned to defraud unsuspecting investors when they formed the pyramid scheme.

Between January and June 20 this year, Matizanadzo, who is being represented by Musindo Hungwe, misrepresented to clients that their club had the capacity to generate 500 percent interest within 42 days.

Allegations are that acting on that misrepresentation , depositors approached Matizanadzo and injected varying amounts of cash ranging from $40 to $1 000 with an aggregated total of $1 040 000.

The amounts allegedly received had different maturity dates. However, the interest rates would all be the same. The two women did not invest the money but used it for their own use.

The offence then came to light after the investors approached Matizanadzo for payment of interest on the maturity dates as per agreement but failed to receive the money.

Investigations by the police revealed that the club was operating without a bank account and that they had vacated their business premises in the Avenues.

Revelations by the police also showed that the club did not have the capacity to operate as a money club as there was no investment policy in place, neither did it have assets or security to cushion depositors funds.

Prosecutor Tungamirai Chakurira opposed bail saying Matizanadzo had transferred the allegedly stolen money from her personal account to a South African bank, an indication that she could easily abscond court.

Comments (3)

Beautiful website, Daily News. This is excellent work. Thanks for giving your readers space for comments. Keep on telling it as it is. Keep it up!

Nkosi Mambo - 28 June 2013

Nice website indeed!

Dick - 30 June 2013

this woman should be locked up for a very long time, people suffer to get money and she decides to steal...let justice be served!

nyle - 1 July 2013

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.