During the trial of Nana Appiah Mensah, also known as NAM1, the fifth prosecution witness, Priscilla Adu-Boateng, testified that after investing GH¢760,000 in Menzgold, the accused assaulted her when she requested her returns.
Priscilla Adu-Boateng, a trader and a single mother of four, claimed that on January 8, 2020, NAM1 brandished a gun when she and other aggrieved customers went to his house in Trassaco, Accra, to demand their money.
“I am a single mother with four children, and these investments were made in furtherance of their education.
“My business is not thriving, and I am in the process of selling my house to make ends meet”, she said in her witness statement, which has been adopted by the court presided over by Justice Ernest Owusu-Dapaa, a Justice of the Court of Appeal sitting as an additional High Court judge,
Led by the Director of Public Prosecutions (DPP), Yvonne Atakora Obuobisa, the witness mentioned that she was attracted to invest in Menzgold due to the advertising billboard. Additionally, she revealed that an executive from Menzgold had persuaded her for about a year before she eventually decided to invest in the business.
After the witness statement was adopted, there was no cross-examination by Counsel for the accused, Kwame B. Akufo.
NAM1, along with two of his companies, Menzgold Ghana Limited and Brew Marketing Consult Ghana Limited, faces 39 charges. These charges include selling gold without a licence, operating a deposit-taking business without a licence, inducement to invest, defrauding by false pretence, fraudulent breach of trust, and money laundering.
The allegations accuse them of defrauding their customers of various sums of money between 2016 and 2018, amounting to GH¢340,835,650.
NAM1 has pleaded not guilty to all charges and is currently on bail of GH¢500 million, secured by four sureties.
Prosecution’s facts
Between 2017 and 2018, as per the prosecution’s account, NAM1 and Menzgold extended invitations to the public to purchase gold from Brew Marketing Consult Ghana Limited and deposit it with Menzgold.
The prosecution alleges that, through various forms of invitations, the accused, representing the two companies as deposit-taking entities, encouraged the public to deposit gold with Menzgold, promising profits ranging from seven to ten percent.
Responding to this invitation, over 16,000 individuals deposited substantial sums, believing they were engaging with an authorised deposit-taking business that would ensure the advertised returns.
Despite numerous engagements and warning notices from relevant agencies, Menzgold Ghana Limited and Brew Marketing Consult Ghana Limited, the prosecution contends, persisted with their operations.
“Meanwhile, members of the public started facing challenges, either with delayed payments or reduced dividends; a number of cheques issued by NAM1 and Menzgold were also dishonoured,” the prosecution said.
On September 7, 2018, the Securities and Exchange Commission (SEC) directed Menzgold to suspend its business for operating without a licence.
Between November 2016 and March 2019, the prosecution said, many customers of the accused entities petitioned the police, complaining that they had invested huge sums of money with the accused, but were unable to realise their investments despite persistent efforts.
“Investigations revealed that the accused persons, under false pretences, took a total sum of GH¢340,835,650 from their customers, which these customers have not recovered.
“Investigations further disclosed that between 2017 and 2018, the accused persons transferred huge sums of depositors’ funds from Menzgold Ghana Company Ltd and Brew Marketing Consult Ltd to Zylofon Media, a company related to NAM1,” the prosecution said.
It added that huge sums of money were also withdrawn by NAM1 or transferred into his bank account for his personal use.
“Investigations have established that the money fraudulently obtained from depositors and dishonestly appropriated by the accused persons remained unpaid as Menzgold Ghana Company Ltd’s licence was revoked,” the prosecution stated.