Police have arrested one of the directors of the E-Creator Ponzi scheme, Trymore Tapfumanei, a day after nabbing the alleged kingpin Zhao Jiaotong.
In a tweet, cops said Tapfumanei (32) was held for fraud involving the scam that saw unsuspecting people lose up to $1 million.
Zhao, 39, appeared in court and was remanded in custody until Monday for his bail application.
Prosecutors claim that in January, Zhao hatched a plan for the online investment Ponzi scheme called e-creator.
He allegedly registered the company with 5 others still at large, including Tapfumanei.
Between February and July, Zhao misrepresented to people that if they invested, they’d enjoy huge monthly profits.
To attract investors, he used TV, social media and socialites like Madam Boss and Mama Vee to advertise. Agents were hired around the country.
But on July 3, some complainants struggled to access their funds. They were assured by Mutambu that it was due to a system upgrade.
However on July 5, complainants got a sh0ck when they saw a notice that E-Creator was no longer operating. Zhao’s photo was posted with a message he took the money and fled to China.
Offices were shut with no signs of business. It emerged Zhao had withdrawn the funds and done a runner.
Complainants lost around US$1 million. Trymore has now been arrested but others are still on the run.
The case highlights the dangers of online Ponzi schemes that promise high returns with little risk.
