UNITED KINGDOM – Victims of a collapsed pyramid scheme run by a convicted Zimbabwean fraudster may get as little as £3,81 each in compensation with authorities in the United Kingdom battling to recover money from his assets.
Russell Ncube, a Zimbabwean businessman based in Northampton, was last year in April sentenced to serve four years and six months in prison after a jury found him guilty of fraud by false representation.
Ncube ran a pyramid scheme called Sinawa Investment Club, where clients invested huge sums of money with him in return for promised profits from investments made. Investors were also paid for recruiting others into the club.
Many fellow Zimbabweans paid hundreds of thousands of pounds into the club. Nehanda Radio reported that the club was shut down by authorities in December 2011.
A few months ago, duped investors were duped told that “a formal confiscation order has been made by the court and this will now enable Mr Ncube’s assets to be confiscated. The court has allowed a maximum period of six months for this process, although it may be completed in a shorter period.
“Once this process has been completed and the court has received the proceeds of Mr Ncube’s assets, it will be possible to calculate the amounts due to individual Sinawa investors. At that stage the court will issue the appropriate compensation payment to you.”
One of those who lost thousands in the pyramid scheme told Nehanda Radio “I have not received a penny from the sale of Russell Ncube’s assets as promised by Courts. I have contacted the Courts dealing with compensation and have been advised that to date the defendant has only paid £1822.31. This has been divided between all of the compensatee’s to the sum of – £3.81 each.”
“Mr. Ncube is a joker and am sure this is one of his tactics to avoid payment. He has been given until 18th August to pay up. He surely should have enough assets to compensate investors unless if he’s hiding other assets and funds to use when released from prison. I am very devastated after losing all my hard earned money lost to Russell Ncube and his businesses,” the victim said.