Over 400 people lose US$80 000 to Mvuma pyramid scheme

Mvuma (New Ziana) – Over 400 people in Mvuma, Midlands province, were allegedly duped of over US$80 000 through a dubious money pyramid scheme one of whose administrators has since been arrested.

There was pandemonium in the small mining town on February 14 when hundreds of disgruntled scheme members besieged Mvuma Police Station baying for the blood of the one of the administrators identified as Rudo Takaendesa, a female adult aged 60 years employed by leading funeral parlour Nyaradzo Funeral Services in the town.

Midlands provincial police spokesperson Inspector Emmanuel Mahoko confirmed that police in Mvuma received a report of more than 400 people who were duped of more than US$80 000 through the pyramid scheme.

“The report was received at Mvuma Police Station on the 14th of February 2021, while the fraudulent schemes were reported to have been running in the town since December 2020,” he said.

Takaendesa, who is alleged to have initiated the scheme in the small town, has been arrested and is in police custody while investigations continue.

Insp. Mahoko said Takaendesa allegedly created a club which she named Devine Gifting Club and 20 sub-groups with administrators.

The sub administrators went on to create their own groups of 16 people each, where members were made to pay $20 joining fee each which would benefit each administrator $320.

A total of 250 groups were created and all contributed money to the suspect Rudo Takaendesa and her close associates, prejudicing ordinary members of the public who were members of the groups.

The matter is now being investigated to establish the degree of participation of all people involved.

When the news of the arrest filtered in the Mvuma community, a crowd of about 400 people gathered at the police station all baying for the blood of the chief administrator of the club.

“They only disappeared on getting assurance that the matter is under investigation,” he said.

Insp. Mahoko urged members of the public to be on the lookout of fraudsters who are duping people money through what they call gifting, flower or mukando.

He appealed to the public to stay away from the clubs as they are being created by criminals to swindle people of money.

New Ziana