Chinese Investor Liu Guorong Arrested for Alleged US$500K Fraud

A Chinese national Liu Guorong accused of defrauding his business associate of nearly US$500,000 in a supposed mining venture has been granted bail of US$1,000.

Liu Guorong appeared before Harare magistrate Tilda Mazhande and was remanded to March 10 as investigations continue.

According to prosecutor Anesu Chirenje, the alleged scam began on March 2, 2024, when the complainant, Wang Jinghai, met Liu through an introduction by Chen Neng Zhi at an investment seminar in China.

During the event, Liu reportedly promoted Zimbabwe as an attractive destination for investment, claiming to have strong connections with high-ranking government officials who could assist in securing mining claims.

Based on these assurances, Wang instructed his business associate, Li Muxin, who was already in Zimbabwe, to meet with Liu and explore potential mining ventures.

Liu, along with an associate identified only as Nyasha and a pegger said to be linked to the Ministry of Mines, later took Li to inspect a mining claim at Gwayi River Mine in Hwange.

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The site was described as containing three shafts and substantial copper deposits.

On May 28, 2024, Wang traveled to Zimbabwe to finalize the deal. Liu and his associate accompanied Wang and Li to the Gwayi River Mine, where they were shown boundary markers and coordinates allegedly designating the mining claim.

Convinced of the site’s legitimacy, Wang authorized the transfer of funds, sending RMB 3,099,639 (around US$444,000) in several transactions to Liu’s Bank of China account.

The prosecution states that Liu acknowledged receiving the funds. However, when attempts were made to obtain the necessary documentation for the mining claim, delays ensued, and Liu eventually became unreachable.

Growing suspicious, Wang revisited the site and found unexpected changes, including a newly erected security fence, which raised concerns about the legitimacy of the deal.

Realizing he had been deceived, Wang reported the matter to the police, leading to Liu’s arrest. Authorities are still investigating the case.