News / Local
Zimbabwe ex-diplomat in fraud storm
22 May 2024 at 04:59hrs | Views
Shamiso Fred, a former honorary diplomat to the United Arab Emirates (UAE), faces legal action for allegedly defrauding Zimbabweans living abroad in what is suspected to be a Ponzi scheme.
Around 300 diasporans who invested in the African Business Women Association (ABWA), an organization founded by Fred, have taken legal action against her. Represented by Blaman Sekete, Grace Pumhu, Vimbainashe Mahwiridi, Amanda Chakawa, and Felix Witness Mambondiani, the investors filed an application at the Zimbabwe Commercial Court naming ABWA and Fred as respondents.
According to the applicants, Fred and ABWA entered into Joint Venture Agreements (JVA) with investors, where they were required to contribute funds for various business projects over a period of up to 48 months. In return, investors were promised monthly profit shares. However, ABWA allegedly failed to fulfill its obligation of paying out the monthly profits.
The investors are seeking a court order directing Fred and ABWA to reimburse them for their investments. In an affidavit filed by Sekete, it is claimed that ABWA has not honored its financial commitments to the investors.
Sekete argued that while the Joint Venture Agreements may be unenforceable, the investors seek recompense based on unjust enrichment as an alternative. He emphasized that the purpose of their legal action is to establish a prima facie case, not to prove their claims beyond a reasonable doubt.
The applicants assert that numerous investors were deceived by Fred, and they seek to pursue legal action against ABWA collectively through a class action lawsuit. They emphasize that their goal is simply to recover the money they invested in ABWA and do not seek any additional benefits at the expense of other investors.
Around 300 diasporans who invested in the African Business Women Association (ABWA), an organization founded by Fred, have taken legal action against her. Represented by Blaman Sekete, Grace Pumhu, Vimbainashe Mahwiridi, Amanda Chakawa, and Felix Witness Mambondiani, the investors filed an application at the Zimbabwe Commercial Court naming ABWA and Fred as respondents.
According to the applicants, Fred and ABWA entered into Joint Venture Agreements (JVA) with investors, where they were required to contribute funds for various business projects over a period of up to 48 months. In return, investors were promised monthly profit shares. However, ABWA allegedly failed to fulfill its obligation of paying out the monthly profits.
The investors are seeking a court order directing Fred and ABWA to reimburse them for their investments. In an affidavit filed by Sekete, it is claimed that ABWA has not honored its financial commitments to the investors.
Sekete argued that while the Joint Venture Agreements may be unenforceable, the investors seek recompense based on unjust enrichment as an alternative. He emphasized that the purpose of their legal action is to establish a prima facie case, not to prove their claims beyond a reasonable doubt.
The applicants assert that numerous investors were deceived by Fred, and they seek to pursue legal action against ABWA collectively through a class action lawsuit. They emphasize that their goal is simply to recover the money they invested in ABWA and do not seek any additional benefits at the expense of other investors.
Source - newsday
