Businessman convicted over US$1m scam

Businessman Luka Ignatius Fabris, a co-director of Spartan Security (Pvt) Ltd, has been convicted together with his company for defrauding a woman of the US$1 million she had invested, with the sentence being handed down today.

 

Spartan was the first accused, while Fabris was charged in his personal capacity as one of the directors.

 

Passing judgment, presiding magistrate Mrs Feresi Chakanyuka found that, while the case against Spartan and Fabris was based on a single witness, complainant Ms Leigh Ann Patricia Rudland (53), her testimony was credible.

 

“The quality of single witness evidence plays a critical role, especially if the evidence is clear and satisfactory,” she said.

 

“The court finds no reason for the complainant to lie against the accused. There is no paper trail of money being paid back to the complainant. Hence the accused is found guilty.”

 

During mitigation and aggravation, Ms Rudland told the court that she wanted to get back her money, although during cross examination by defence lawyer Mr Joseph Nemaisa, she agreed that she deposited Zimbabwean dollars and that currency had been susceptible to inflation.

 

Nonetheless, she maintained that she was promised to be given the interest in United States dollars, hence the compensation should be in US dollars.

 

Fabris argued in his defence that the two had an arrangement to change a bank transfer into cash and that the value of the cash fell because of inflation.

 

The State said that during 2019, Fabris, acting on behalf of his company, approached Ms Rudland and told her that the company was involved in a profitable cattle ranching business. He got her to invest into the business and promised that she would get 2 percent of her total investment every month.

 

Ms Rudland, who had her money banked with her lawyers, instructed her lawyers to transfer some money into Fabris’ bank account and on March 21, 2019, the lawyers transferred Z$4,8 million.

 

The two agreed that the money was equivalent to US$1 million at the prevailing bank rate at that time.

 

However, after Ms Rudland made her investment, she only received US$540 000 in total returns and thereafter, Fabris stopped giving her any money and started giving excuses.

 

In his defence, Fabris agreed that the two had an arrangement to change a bank transfer into cash and that the value of the cash fell because of inflation. He denied the fraud charge, arguing that he paid Ms Rudland all her money owed.

 

He contended that the deal had nothing to do with any investment and was simply an arrangement with Spartan for Ms Rudland to convert a Z$4,8 million electronic transfer.

 

Fabris said Ms Rudland had to collect her cash in batches and by the time she collected the last batch of, her money had lost value due to inflation.

 

 

She started to demand compensation for the inflation-induced loss, which directors of the company declined as it would amount to an unjust enrichment of the complainant.

 

He contended that the matter was a civil law dispute, but she had chosen to seek recourse through the criminal justice system.

 

The State is represented by Mr Anesu Chirenje. The Herald