Three money-spinning ventures, Geozing Pawnbrokers, Perfect Shot Investments and Perandori, have failed to pay investors any interest, leaving scores of investors stranded.
Some companies were offering interest rates of between 30 and 40 percent a month. First to collapse was Geozing Pawnbrokers who allegedly duped hundreds of clients of their money. More than 4,000 investors lost money. The company’s director and owner, George Zingani, has already appeared in court facing charges of fraud.
“I invested $1000 in Perfect Shot in January. My investment was supposed to mature at the end of this month and I was supposed to have been paid $2000 for the investment. I have approached the police to seek assistance to recover my money,” said a ZIMRA worker who refused to be named.
The investor claimed that he knew a friend who “harvested “money last year after investing in one of the companies.
“It appears those who invested earlier benefited the most,” said the investor.
Charles Bhebhe, an economist at the University of Science and Technology, said such schemes were bound to collapse.
“Even in countries such as America with strong economies, no financial institute will offer such high interest rates. The rates offered by these pyramid companies are suspicious and unsustainable and only gullible people would fall prey to such things,” said Bhebhe.
Post published in: News