THE High Court has overturned a magistrate's ruling in which Spartan Security (Pvt) Ltd and its director, businessman Luka Ignatius Fabris were convicted of fraud involving US$1 million.
High Court judges, Justices Happias Zhou and Benjamin Chikowero, acquitted the two parties, ruling that the lower court erred when it convicted Fabris and his company.
"The appeal is allowed. The conviction is quashed and the sentence has been set aside. The first accused, Spartan Security, is found not guilty and acquitted, and so is the second accused Lucas Fabris," read the order.
Fabris was accused of defrauding Leigh Ann Patricia Rudland (53) in a failed cattle ranching business deal.
Fabris and Spartan Security appealed the conviction, arguing that no fraud had been committed.
Harare magistrate Feresi Chakanyuka had sentenced the company to pay a fine of US$300.
Fabris was sentenced to also pay a fine of US$300 and was given a wholly suspended sentence of 12 months imprisonment on condition that he does not commit a similar offence within the next five years.
Initially Fabris was convicted of US$1 million fraud.
Magistrate Chakanyuka ordered Fabris to restitute Rudland US$460 000 or equivalent in local currency by July 31 as it was the outstanding balance.
It was the State's case that in 2019, Fabris, acting on behalf of his company, approached Rudland and told her that the company was involved in a profitable cattle ranching business.
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He got her to invest into the business and promised that she would get 2% total investment every month, but the deal never materialised.
It was alleged that Rudland, through her lawyers on March 21, 2019, transferred Z$4,8 million. The two orally agreed that the money was equivalent to US$1 million at the prevailing bank rate at that time.
However, after Rudland made her investment, she only received US$540 000 in total returns and thereafter, Fabris stopped giving her any money.
In his defence, Fabris agreed that the two had an oral arrangement based on trust to change a bank transfer into cash and that the value of the cash fell because of inflation.
He denied the fraud charge, arguing that he paid Rudland all her money owed.
He contended that the deal had nothing to do with any investment and was simply an arrangement with Spartan for Rudland to convert a Z$4,8 million electronic transfer.
Fabris said Rudland had to collect her cash in batches and by the time she collected the last batch of, her money had lost value due to inflation.
She started to demand compensation for the inflation-induced loss, which directors of the company declined as it would amount to an unjust enrichment of the complainant.
Rudland and his company were represented by their lawyers Joseph Nemaisa and Tawanda Zhuwarara.
