Manzi, who has been in detention since his arrest on July 30, first appeared before the court on August 19, when his trial was postponed after the defence said they were not ready for trial.
The prosecution presented three charges against him: obtaining something of value by deception, illegal currency exchange, and money laundering. It is alleged that Manzi, together with his wife, founded Billion Traders FX and encouraged people to invest their money with a promise to return their capital along with the profits.
Preliminary information from Rwanda Investigation Bureau (RIB) indicated that at least 500 people had invested up to $10 million in the company.
The prosecution explained that Manzi received large sums of money, some directly to him and others through his wife, but failed to fulfil the promises he made to investors. Frustrated investors eventually turned to the justice system for help.
Under the law, anyone engaged in currency trading must obtain authorization from the National Bank of Rwanda (BNR), which Manzi did not have. It is also alleged that when Manzi registered his company with the Rwanda Development Board (RDB), he claimed he would trade currency but instead conducted illegal online currency exchanges not permitted in Rwanda.
The prosecution presented evidence that Manzi promised investors lucrative returns, such as a 'double profit package' where a $10,000 investment could yield $20,000 in just five months. Another scheme promised 0.8% monthly returns on a $30,000 investment, with the principal returned after five months.
It is understood that the invested funds are still unaccounted for because the suspect claims that the money was frozen abroad.
In November 2022, the Capital Markets Authority alerted RIB that Manzi was operating without a license, posing a risk to investors. The prosecution further explained that inspections conducted on January 2, 2024, and December 28, 2023, found that neither Manzi's nor his wife's accounts had any funds, suggesting money laundering by transferring the money elsewhere.
Given these serious submissions, the prosecution requested the court to order his detention while the case is under preparation for trial arguing that his detention would prevent him from evading justice fleeing.
In response, the suspect denied all charges, stating that the prosecution's claims differed from the operations of his company, which he launched in 2020. He explained that before starting the company, he sought authorization from BNR and was told there was no existing law permitting such a business but was allowed to operate as regulations were being developed.
He claimed that in 2022, BNR and Capital Markets staff visited his company and praised its operations, but shortly after, they issued a public notice on television, warning people against investing in it.
Manzi stated that in November 2022, RIB froze the company's bank accounts, blocking over $990,000 and causing significant losses. He asked the public to file complaints to address emerging issues related to the frozen funds.
He later communicated with RIB to return the frozen funds to the rightful owners, which he said was done. Manzi insisted that his business was neither fraudulent nor deceptive, as it had been running for ten years, and asked for justice so that he could return the money owed to Rwandans.
He mentioned that he worked with a company called Ice Markets in Australia, which also froze over $2.5 million of his funds after the investigation began.
'The Rwandans' money is available, and we know where it is. I ask for a chance to recover and return it to the rightful owners,' he said.
Manzi argued that if released, he could continue to recover his frozen funds and pay back those he owes. He indicated that by December 2023, he had already repaid over 70% of the capital received from the public.
Manzi explained that promising seemingly exaggerated profits was based on what he believed was possible. 'This business is not widely understood; people often misinterpret it. I saw it as feasible, and I still believe it is. I made a profit, and so did the Rwandans. If this is properly understood in Rwanda, it could benefit the country,' he said.
He revealed that he had 559 clients at the time. Manzi argued that continued detention would not benefit anyone, as the Australian company holding his funds would only release them once his legal issues in Rwanda were resolved.
His lawyer, Me Zawadi Sylvere, emphasized that Manzi would not flee justice and requested the court to allow him to be followed up while out of detention.
The court's decision will be announced on August 28, 2024.
Sam K Nkurunziza
Source : https://en.igihe.com/news/article/manzi-denies-charges-in-rwf13-billion-fraud-case
