THE Drug Enforcement Commission (DEC) in collaboration with Securities and Exchange Commission (SEC) has arrested a 24-year-old South African National and a Zambian for money laundering involving over K6 million and over USD 140,000.00.
And the two institutions have express concern over the increased number of cases and people getting involved in and consequently losing out from “PONZI” or pyramid Schemes.
The Commission through our Anti-Money Laundering Investigations Unit arrested and jointly charged Simphiwe Gewensa, a South in his capacity as financial controller at Earn Mo Holding under Earn Mo Digital Marketing and Advertising Limited and Mubanga Mwale, a Zambian aged 32.
The duo was arrested for various offences under the Securities Act, the Forfeiture of Proceeds of Crime and the Prohibition and Prevention of Money Laundering Act number 14 of 2001 as amended by Act 44 of 2010.
It is alleged that the suspects obtained K6, 946, 945.00 and US$ 143, 810.00 cash from members of the general public by falsely pretending that the money would legitimately earn a predetermined interest of up to 100% per month when in fact not.
The Commission has since seized a total of ZMW 608,615.00 and USD 13,620.00 in cash from the suspects.
And the two institutions have warned members of the public from investing in such schemes as they risk losing their hard-earned money.
“The Commission has been receiving numerous complaints from members of the public whose funds have been lost to such schemes.
You will recall that not too long ago, the Commission investigated and arrested Directors for companies such as Heritage Coin, Mineral Pay, Ono and Comsave for similar operations. It is unfortunate that members of the public have continued to fall prey to such schemes,” reads a joint statement issued.
They have urged companies that intends to take in deposits from the public or engage in investment advisory activities or make actual investments of funds on behalf of the public to properly be licensed or registered with the two institutions.
Members of the public have further being advised to be smart investors and follow the right procedure when investing in such schemes.