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The trial in which two Chinese nationals, Zhao Jiatong and William Chui are facing fraud charges after they allegedly conned hundreds of people in a pyramid scheme has commenced before Harare Magistrate Francis Mapfumo, with the two denying the allegations.

The court heard two socialites, Tyra Chikocho, better known as Madam Boss and Admire Mushambi aka Mama Vee, will testify in court.

Jiatong is still locked up in jail.

Jiatong and Chui denied conning people, telling the court that their arrest came as a surprise.

“The accused (Jiatong) will tell the court that he is not good in the English language, such that he never communicated with any of the state witnesses at any given time,” his lawyer submitted.

Jiatong said he had never benefited from the alleged fraud and never attempted to run away because he knew nothing regarding the scheme.

“He was surprised when he was arrested in connection with this case and nothing incriminating was found upon his person or in his phone or anywhere else.

“He will thereof put the state to the strict proof thereof,” read his defence outline.

Chui echoed the same sentiments telling court that he never had any communication with the complainants.

He also said no complainant named him in their statements.

Allegations against Jiaotong are that in January 2023, he hatched a plan to defraud unsuspecting Zimbabweans through an online investment Ponzi scheme.

It is alleged that on 7 February, Jiaotong and his alleged accomplices registered a company with the Zimbabwean Registrar of Companies, styled E-Creator Electronic Commerce [Private] Limited under company registration number 2853/23, with its office situated at room number 15 and 16, 10th Floor Joina City Building, Harare.

They went on to launch the company as an online e-commerce operator with the global internet as its core.

It is alleged that from February to July 2023, they misrepresented to unsuspecting Zimbabweans that if they invested with the company, they were going to enjoy huge monthly profits proportional to the amounts invested.

As such, many Zimbabweans joined and invested up to US$1 million in total through various Ecocash subscriber lines supplied on the platform by the suspect.

It is further alleged that to make the company more attractive and appealing to unsuspecting clients, Jiaotong used the media, including the national television broadcaster Zimbabwean Television (ZTV), social media and socialites Madam Boss, and Mama Vee to advertise the business on their social media platforms.

They also employed various agents in major towns and cities throughout the country in order to market the business.

“On July 3, some of the complaints encountered challenges in accessing their funds and approached the company for clarification,” prosecutors said.

One of the accused assured these complainants that it was a system upgrade that was affecting their access to their funds.

He further advised them that the situation would normalise in due course.”

However, on 5 July 2023, the state says, complainants were shocked to realise that E-Creator Electronic Commerce [Private] Limited had sent a notice on their website that they were no longer operating, and they posted the passport photo of accused Jiaotong as the one who had taken their investments and absconded to China.

Clients are said to have visited the investor’s offices to find directors having vacated the premises with nothing to suggest they were still continuing with operations.

It is also alleged that clients were informed that Jiaotong had withdrawn their investments and fled.

As a result of his actions, prosecutors allege, clients suffered an actual prejudice of US$1 million, and nothing was recovered.