US$3 Million Investment Scam: Two Men in Court for...

US$3 Million Investment Scam: Two Men in Court for Alleged Fraud

Munyaradzi Mashiri – Court Correspondent

Two men have appeared in court facing fraud charges after allegedly duping a local company into investing US$20 000 in a fake Standby Letter of Credit scheme that promised a staggering US$3 million return.

George Masvipe, 47, of The Grange, and Pascal Magama, 59, of Bulawayo, appeared before the Harare Magistrates’ Courts on fraud charges.

The complainant in the matter is Terraworld Investments Private Limited, represented by company co-director Terence Mwahowa.

According to the State, sometime in March 2023, Masvipe approached the complainant and misrepresented that there was a lucrative investment opportunity with a company called Needflow Capital Private Limited.

Masvipe claimed that an investment of US$20,000 would yield US$3 million within three months. He explained that the money was needed to pay setup fees for an SBLC—an international payment guarantee issued by banks—and that the scheme would eventually generate US$26 million, of which the complainant would receive US$3 million.

To add credibility to the scheme, Masvipe introduced Pascal Magama as the individual responsible for processing the investment. Magama reportedly signed a deed of agreement acknowledging receipt of the funds.

Believing the proposal to be legitimate, the complainant transferred US$20,000 to the accused.

However, after the transaction, the complainant received no returns. The accused allegedly continued making false promises until the complainant realized he had been defrauded and filed a police report.

The total value lost in the alleged scam is US$20,000.