Bulawayo pyramid scheme director arrested

By Thandeka Moyo

ONE of the directors of Perfect Shot Investments, a Bulawayo pyramid scheme that collapsed leaving investors stranded, has been arrested after being allegedly on the run for a month.

Kelvin Mazhandu, 24, who is facing charges of swindling investors of more than $160,000, failed to attend court on November 7 and a warrant was issued for his arrest.

He only resurfaced on Monday at the courts trying to get the warrant cancelled.

Police officers identified him and arrested him on the spot.

Regional magistrate Trynos Utahwashe rebuked Mazhandu’s lawyer for wasting the courts’ time as he claimed Mazhandu had been seriously ill for the past month.

“It does not make sense for you to say the accused was ill for a month yet there’re no documents to prove that. Corruption is rife these days and if I release him today, no one knows what you can do to cook documents that will prove your claims,” he said.

Magistrate Utahwashe remanded Mazhandu in custody to December 15.

Mazhandu of Morningside, Bulawayo, briefly went on the run before he was arrested last year. On Monday he told the court he was ill.

“My client is of ill health and since his case is of public interest, he has been receiving threats from members of the public who are demanding their money back,” said his lawyer.

Magistrate Utahwashe said Mazhandu would be safer in custody if investors were baying for his blood.

Prosecuting, Tinashe Dzipe said between 1 February and 5 May 2013, Mazhandu with intent to defraud the complainants of their money, placed adverts in the local newspapers misrepresenting to the public that his company, Perfect Shot Investments, had been authorised to accept deposits from the public.

Mazhandu would through his pawn broking company invite people to deposit their money promising to pay between 30 and 35 percent interest per month.

He would draw a contract form with clients where they would provide their identity details and the amount invested.

The complainants allegedly made different deposits during that period amounting to about $163,000. The court was told that Mazhandu took the money and converted it to his own use.

When the pyramid scheme collapsed he allegedly fled to South Africa.

He was arrested on his return. The Chronicle