News / National
More pyramid scheme - Pawnbrokers - victims emerge
02 Apr 2013 at 23:36hrs | Views
A number of prominent businesspeople were among victims who may have lost thousands of dollars to Geozing Pawnbrokers, a pyramid scheme.
Geozing Investments is owned by Mr George Zingani.
The company used to invite people to deposit money, promising to pay 30 percent interest every month. After receiving the deposits, Geozing would then loan out the money at 35 percent interest.
Chronicle caught up with some of the victims, who said they have lost hope of getting their money back.
The investors, among them politicians, leaders of churches and senior civil servants, spoke on condition that their names would not be published.
"I do not know what to do. I invested part of a trust fund for my children's education. My wife is not even aware that the money is no longer there. I do no think she will understand that my intentions were good when I took the money without telling her," said a businessman.
The businessman said he had invested a "substantial" amount.
He said a friend of his who was also into business died of heart failure recently after learning that Mr Zingani had been arrested and was likely to lose his life savings.
A chief from Matabeleland South reportedly fell ill when the story broke out, after allegedly investing about $15 000 with Geozing.
A church leader in the city, said trouble was brewing at the church after the treasurer, in agreement with church elders, had invested $8 000 from the church's burial society fund.
"We are praying that this matter will be resolved and Geozing pays us our money. We no longer care about the interest. We wanted to surprise congregants by multiplying their money. Many people may lose their faith in God if a member dies and it is discovered there is no money to pay (funeral expenses). I do not know how you got the story, but please do not publish the name of the church," said the church leader.
The pastor said a Bulawayo man lost about $100 000 from a "recreation fund" contributed by colleagues at his workplace.
About 4 000 people are suspected to have lost money that they invested in the scheme.
The Geozing scheme was a hit in the city, with some people even selling their property including cars and houses to invest.
Lecturers at tertiary institutions, bank managers, judicial officers and pensioners are also among people who may have lost their money.
Some people reportedly sent deposits from as far as the United Kingdom in a bid to sustain family members back home.
Mr Zingani was last week taken to court, for fraud, after one of his "clients" reported him to the police.
He, however, was later charged with violating Section 5 (1) (b) of the Banking Act, Chapter 24:30 as read with Section 277 of the Criminal Law (Codification and Reform) Act, Chapter 9:23 after the State altered the charge because he did not misrepresent to the investors but entered into contract with them.
He will be back in court on 11 April. Geozing has been placing newspaper advertisements assuring investors that they will get their money back but none of the investors who have contacted Chronicle have got anything so far.
Geozing Investments is owned by Mr George Zingani.
The company used to invite people to deposit money, promising to pay 30 percent interest every month. After receiving the deposits, Geozing would then loan out the money at 35 percent interest.
Chronicle caught up with some of the victims, who said they have lost hope of getting their money back.
The investors, among them politicians, leaders of churches and senior civil servants, spoke on condition that their names would not be published.
"I do not know what to do. I invested part of a trust fund for my children's education. My wife is not even aware that the money is no longer there. I do no think she will understand that my intentions were good when I took the money without telling her," said a businessman.
The businessman said he had invested a "substantial" amount.
He said a friend of his who was also into business died of heart failure recently after learning that Mr Zingani had been arrested and was likely to lose his life savings.
A chief from Matabeleland South reportedly fell ill when the story broke out, after allegedly investing about $15 000 with Geozing.
A church leader in the city, said trouble was brewing at the church after the treasurer, in agreement with church elders, had invested $8 000 from the church's burial society fund.
"We are praying that this matter will be resolved and Geozing pays us our money. We no longer care about the interest. We wanted to surprise congregants by multiplying their money. Many people may lose their faith in God if a member dies and it is discovered there is no money to pay (funeral expenses). I do not know how you got the story, but please do not publish the name of the church," said the church leader.
The pastor said a Bulawayo man lost about $100 000 from a "recreation fund" contributed by colleagues at his workplace.
About 4 000 people are suspected to have lost money that they invested in the scheme.
The Geozing scheme was a hit in the city, with some people even selling their property including cars and houses to invest.
Lecturers at tertiary institutions, bank managers, judicial officers and pensioners are also among people who may have lost their money.
Some people reportedly sent deposits from as far as the United Kingdom in a bid to sustain family members back home.
Mr Zingani was last week taken to court, for fraud, after one of his "clients" reported him to the police.
He, however, was later charged with violating Section 5 (1) (b) of the Banking Act, Chapter 24:30 as read with Section 277 of the Criminal Law (Codification and Reform) Act, Chapter 9:23 after the State altered the charge because he did not misrepresent to the investors but entered into contract with them.
He will be back in court on 11 April. Geozing has been placing newspaper advertisements assuring investors that they will get their money back but none of the investors who have contacted Chronicle have got anything so far.
Source - TC
