Two arrested for swindling investors out of K130 million

Police

Malawi Police Service (MPS) has arrested two people for stealing K130 million from several individuals using a fraudulent investment scheme.

Fiscal and Fraud Section of the Malawi Police Service have arrested Chipo Upindi Hunga aged 29 and 28-year-old Manford Mkandawire over the scheme.

The law enforcers said the principal suspect in the crime, Dorothy Kalichero, is at large.

According to police, the three suspects opened Coin Chambers – a Ponzi Scheme – which is an illegal business practice in which money from new investors is used to make payments to earlier investors.

“The perpetrators of such an investment scam take in as much money as possible and then disappear.

“Everyone involved in promoting the scam pretends to mount a legitimate organization but little or no commercial activity takes places,” police said in a statement.

The law enforcers said the amount of money stolen by the three is likely to increase as more victims are coming to Fiscal Police to report more.

The two suspects will answer charges of operating a business as a financial institution without being registered or licensed by the Registrar of Financial Institution Contrary to Section 21 of the Financial Services Act.

They will also be charged with Conspiracy to defraud Contrary to Section 323 of the Penal Code, Fraud other than false pretences Contrary to Section 319A and Money Laundering Contrary to Section 42 of the Financial crimes Act.

Chipo Upindi Hunga hails from Gwesere village TA Njombwa in Kasungu while Manford Mkandawire comes from Ngonga Village TA Chikulamayembe in Rumphi

 

Advertisement