A MAN allegedly recruited thirty five people, forged documents to give an impression they were employees of a security company, and used that deception to secure a loan with a financial institution. Lionel Tanaka Zvarivadza is being accused of this fraudulent act in which the financial institution lost US$91,500. According to the police, he entered into an agreement with the financial institution to get a loan for the ‘employees’ of the security firm.
Under the deal, the loans would be given to these ‘workers’ at a monthly interest rate. The security company was then expected to deduct the repayments from its ‘employees’ salaries’ and remit them to the lender. After getting forged confirmation letters, the financial institution disbursed loans ranging from US$1,000 to US$5,000.
The lender later discovered that the loans were not being repaid. After contacting the security company, the company found out that the ‘employees’ were not on the firm’s payroll. A police report was filed and Zvarivadza was arrested last week.
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In a statement, CID spokesperson, Detective Inspector Rachel Muteweri, said: “The Zimbabwe Republic Police confirm the arrest of one suspect for fraud as defined in Section 136 of the Criminal Law (Codification and Reform) Act and for contravening Section 8(1)(a) and (b) of the Money Laundering and Proceeds of Crime Act (Chapter 9:24). “The Zimbabwe Republic Police continue to urge the transacting public to be wary of fraudsters who masquerade as legitimate agents and to verify their authenticity before making any transaction.”
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