HARARE, Mar. 24 (NewsDay Live) – A Cobra Security marketing representative has been remanded in custody over an alleged US$65 000 fraud involving a microfinance firm.
Lionel Zvarivadza (39) appeared before magistrate Ruth Moyo yesterday and was remanded in custody pending a bail ruling set for March 25.
Prosecutors allege Zvarivadza duped Trebox Finance into releasing loans using fake employees.
The court heard that under the agreement, the microfinance company would issue loans to Cobra Security employees, with repayments deducted from salaries and remitted monthly.
However, Zvarivadza allegedly recruited 35 people, falsely presenting them as employees of Cobra Security.
He is accused of signing confirmation letters to secure loan approvals, leading to the disbursement of funds which he allegedly received and claimed were meant to revive the company.
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Instead, he allegedly gave some recruits token payments of between US$30 and US$100, while others were only promised jobs.
To maintain trust, Zvarivadza reportedly signed acknowledgement letters and undertook to service the loans.
He made limited repayments of US$3 788.50 over two months before defaulting.
The fraud was uncovered after the complainant made follow-ups with Cobra Security and the supposed employees.
The matter was reported on March 18, leading to his arrest.
Total prejudice stands at US$65 000, with only US$3 788.50 recovered.