Pyramid scheme shuts down

Source: Pyramid scheme shuts down | Herald (Top Stories)

(FILE) An unidentified man reads a notice at the gate of KWD Digital Marketing in Borrowdale, Harare.— Picture: Kudakwashe Hunda

Herald Reporter
A HARARE company that runs an investment scheme offering 50 percent interest within six weeks has shut its offices leaving scores of investors stranded.

Bevern Capital, whose directorship is still unknown, has been operating from Number 12 Lawson Avenue.

According to a notice at the premises, the closure was meant to allow the company to comply with the law.

Part of the notice reads: “Inconveniences caused are sincerely regretted. We would like to advise all our valued clients that we have closed our offices for pay-ins and pay-outs for legal and compliance issues.”

The company assured its clients of reopening soon.

This follows a recent statement by the Reserve Bank of Zimbabwe (RBZ) that the company had no banking licence as required by the law. The central bank said such investments involving taking money from people required a banking licence, hence the firm was operating illegally.

The central bank stated that another firm, KWD Digital Marketing of 147 Freedom Legacy Road in Gunhill, was also operating in violation of the Banking Act.

RBZ and police last week launched investigations on the two companies and KWD directors reportedly fled to South Africa.

Meanwhile, the police are hunting down the KWD directors with a view to interview them on the legality of the company’s operations.

KWD was offering to double deposits made within four weeks, a promise that is not sustainable in normal business.

COMMENTS

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    Fallenz 1 month ago

    Of a truth, the greedy and/or ignorant are the most susceptible to con artists.  Anyone with a lick of sense will recognize that promises of such immediate, extraordinary returns on investments (ROI) can happen only in early involvement in a PONZI-like scheme, or with the discovery of a leprechaun’s pot of gold at the end of that fabled rainbow.  Legitimate investors do a considerable amount of investigation in the form of due-diligence, and apply a lot of common sense, before handing over their money.   PONZI schemes require those who do none of that.