HARARE – A court on Wednesday ordered Spartan Security boss Luka Ignatius Fabris to pay US$450,000 to the wife of millionaire tycoon Simon Rudland following a botched business deal.
Spartan Security was also fined US$300 after a criminal complaint of fraud filed by Leigh Ann Patricia Rudland, who said she had been duped by the company and Fabris over a US$1 million investment in a cattle ranching project.
Fabris and his lawyers had maintained that the matter was a civil dispute, but Harare magistrate Feresi Chakanyuka proceeded with the trial as she convicted him and his company.
The businessman must pay Rudland US$450,000 restitution by July 31 or face jail for 12 months, the magistrate ruled.
Chakanyuka said Leigh Ann Rudland, wife of the cigarette and gold dealer Simon Rudland, had been heavily prejudiced.
The National Prosecuting Authority (NPA) said on March 2, 2019, Fabris, acting on behalf of his company, approached Rudland and told her that the company was involved in a very profitable cattle ranching.
“He lured her to invest into the business and promised her that she would get two percent of her total investment every month” until the money was fully paid back, said Anesu Chirenje, prosecuting.
Rudland, who had her money banked through her lawyers, instructed the lawyers to transfer ZW$4,800,000 into Fabris’ bank account. The two agreed that the money was equivalent to US$1 million at that time.
Rudland said she only received US$540,000 before Fabris stopped making payments.
In his defence, Fabris said his transaction with Rudland had been mischaracterised. He claimed that Rudland wanted to turn money held in the bank as electronic money into cash, but the value of the local currency was ravaged by inflation.
He maintained that he paid Rudland all her money and was no longer indebted to her.
He contended that the deal had nothing to do with any investment and was simply an arrangement with Spartan for her to convert a ZW$4,8 million electronic transfer into cash, with a one percent deduction by Spartan.
Fabris said Rudland had to collect her cash in batches as she had agreed and by the time she collected the last batch of cash, her money had lost value due to inflation before she started to demand compensation for the inflation inflicted loss, which directors of the company declined as it would amount to her unjust enrichment.
The businessman also insisted that the matter was civil, but Rudland chose to seek recourse through the criminal justice system.
The presiding magistrate however ruled in favour of Rudland noting that witness evidence was satisfactory.