Financial Crime World

Namibian Man Accused of Operating Ponzi Scheme Faces Trial Within a Trial over Evidence Admissibility

In a dramatic turn of events at the Windhoek High Court, a trial within a trial has been called for to determine the admissibility of financial statements in the case of Sakaria Megameno Namwandi, a Namibian man accused of defrauding 79 individuals to the tune of N$4.3 million through a Ponzi scheme.

Accused and Charges

Namwandi and his close corporation, Asset Legacy Investment CC, are facing 125 charges, including:

  • Fraud
  • Theft by false pretence
  • Money laundering
  • Racketeering
  • Conducting banking business without authorization
  • Operating a Ponzi scheme
  • Two counts of tax evasion
  • Two counts of failure to pay taxes

Issues with Evidence

However, a potential roadblock to the trial emerged when Namwandi’s legal team, led by lawyer Joseph Andreas, raised concerns over the legitimacy of financial statements the State intended to introduce as evidence. The documents include bank statements of Namwandi and Asset Legacy Investment CC.

Privately Obtained Bank Statements

According to Andreas, the Bank of Namibia did not authorize any person to investigate or obtain records, especially bank statements, of the accused during October 2019 when these statements were acquired. In a statement, Andreas argued that this constituted a:

  • Violation of the accused’s right to privacy, as guaranteed by Article 13 of the Namibian Constitution, and
  • Potential breach of the accused’s right to a fair trial under Section 179(1)(b) of the Criminal Procedures Act

Authenticity of Statements and Authorization

Andreas also took issue with the absence of a search warrant and proper authorization for Roma Nel, the Bank’s chief compliance officer, to analyze or investigate the documents in question. He disputed the authenticity of the bank statements and insisted that the accused were not provided with proper notice, as required under the Banking Institutions Act.

State Response and Judgement

In response, State Advocate Constance Moyo indicated that she would oppose the application and requested additional time to line up witnesses to testify regarding the authenticity and manner of obtaining the documents.

Judge Naomi Shivute remanded the matter to a status hearing on a later date to determine the dates for the trial-within-a-trial. If successful in his application, Namwandi’s legal team may prevent the use of these financial statements as evidence during the upcoming trial.

Useful Resources

To learn more about Ponzi schemes and how they can potentially impact individuals and businesses, consider visiting the following resources:

Important Notice

This article has been generated using a template and may not contain complete or accurate information. For the most up-to-date and accurate information, please refer to the original article or contact the relevant legal or law enforcement authorities responsible for the case.