Prosecutor general Martha Imalwa has accused self-proclaimed forex trader Michael Amushelelo’s investors of not being truthful in their claims.
Imalwa said there are inconsistencies with the claims of the investors in comparison to their bank records.
The said investors have allegedly lied about the total amount they have invested and how much was paid out to them by Amushelelo through his companies; Project One Million and Global Growth Investment Namibia CC.
They have also not been truthful about how some received money before they even made deposits for their said investments with Amushelelo.
In addition, they have also not disclosed how they acquired the funds they have invested and the actual loss they have suffered.
According to Imalwa, some investors have lied about knowing that Amushelelo was operating an illegal scheme.
They did also not give evidence that they tried to establish if Amushelelo’s business was legitimate.
Imalwa is opposing the application of 44 of Amushelelo’s investors, who applied to have their funds excluded from the preservation order that the prosecutor general is seeking against various assets, bank accounts, and properties belonging to Amushelelo and a vehicle belonging to Taimi Amushelelo.
The group forms part of 57 people who were allowed by the court to be part of the proceedings. According to the group, they stand to lose more if the final preservation order is granted by the court.
Investors allegedly paid about N$14.7 million to Amushelelo and his companies in 348 individual transactions. The highest investment made is more than N$1 million and the lowest being N$15 000.
Imalwa said although Amushelelo solicited money from members of the public with hopes of high returns via forex trading, he did not trade nor make money from these foreign exchange platforms.
“An analysis of the respondents’ accounts wherein the amount of the so-called investment was paid into, clearly confirms that the money received into the account was either used to pay-out earlier investors or was used for Mr Amushelelo’s own benefit,” explained Imalwa.
She added the scheme was at all relevant times insolvent and did not have enough money to repay all the investors their money.
In the preservation application, the prosecution is stating that there are reasonable grounds that the properties are proceeds of unlawful activities such as fraud, money laundering, tax evasion, and racketeering.
The prosecution has since charged Amushelelo and co-accused Gregory Cloete, four close corporations, a company, and a trust controlled by Amushelelo.
Amushelelo is facing 365 counts, while Cloete is charged with 360 of the counts. These charges range from fraud, alternatively theft by false pretences, conducting banking business without authorisation and conducting a Ponzi scheme, tax evasion, tax fraud, failure to pay tax, money laundering, and racketeering.
They are due to appear in court on 29 March.