Namibian trader accused of running the 'Project One Million' pyramid scheme
Publish date: 01 November 2019
Issue Number: 96
Diary: CompliNEWS
Category: Investments
Namibian foreign currency trader Michael Amushelelo, who was arrested on four criminal charges this month, has been involved in running a pyramid investment scheme, a police officer is claiming in an affidavit filed at the High Court. Daniel Lilata said Amushelelo ‘misrepresents himself to the public by promising them that the funds he receives from the public are traded on forex markets’. The Namibian reports that the affidavit was filed in response to an urgent application that Amushelelo lodged at the court last week. Lilata claimed the suspect ‘uses the deposits received from other depositors to pay the depositors whose investments have matured and are due'. In his urgent application, Amushelelo is asking the High Court to order the police to return cars, computers, business records and other items seized from his house and office. He has also given notice that he will be asking the court to review and set aside Windhoek magistrate Alweendo Venatius' decision to authorise the two warrants that were issued.
According to Amushelelo the people that lent him money received their money back plus 50% interest back after only two months.
Amushelelo (28) and co-accused Cloete (31) have been charged with offences under the Banking Institutions Act and the Prevention of Organised Crime Act. They were released on bail of N$35 000 each, and have to appear in the Windhoek Magistrate's Court again on 14 April 2020.
