[ 2017-03-31 ]

The accused's company had no licence to operate banking business

CEO sentenced 20 years for defrauding over 150 persons

The Chief Executive Officer of Prime Hedge
Investments Limited, Richard Appiah, has been
sentenced to 20 years imprisonment by a Financial
and Economic division of the High Court, for
defrauding 154 persons and companies under the
pretext of investing their monies for them.

Appiah is said to have collected over GHc 5
million and other amounts in foreign currencies
from his clients to invest for a period of six
months to one year, with the promise of 4 to 10
percent interest on the monies deposited.

In the judgment delivered today [Friday], Justice
Efia Serwaa Asare Botwe said the prosecution
proved beyond every reasonable doubt that the
accused, who pleaded not guilty, perpetuated the
act.

According to the prosecution, led by Winifred
Sarpong, during the trial, the accused, whose
company was located at Sakumono in Accra, had no
licence to operate banking business.

He is alleged to have collected monies as deposits
and paid interest between four to 10 per cent in
six to 12 months.

The prosecution further added that, Appiah paid
interest promptly when he commenced business, and
as such won the confidence of his clients.

However, a client who deposited his GH 16,000
cedis with the institution could not be paid his
principal and interest, and therefore lodged a
complaint with the Police which led to the arrest
of Appiah.

Following his arrest, 154 people also lodged
complaints claiming that he had collected monies
between GHc 1,000 and GHc 250,000 from individuals
and companies, but failed to refund their monies.

Several Ghanaians have fallen victim to such scams
with the most criticized one being the DKM
Microfinance scandal.

Source - citifmonline.com

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