Kigali, Rwanda – Businessman Davis Manzi, founder of the controversial online forex exchange company Billion Traders Ltd, has been convicted and sentenced to seven years in prison by the Gasabo Intermediate Court. The ruling, delivered on Friday, December 12, marks the culmination of a nearly two-year legal battle over charges of illegal foreign currency exchange, fraud, and money laundering.
Manzi was also hit with a stiff fine of Rwf 11.36 million. His wife, Sophie Akaliza, was found guilty of complicity and sentenced to three years in prison.
The $10 Million Allegations
Prosecutors successfully argued that Manzi’s company, Billion Traders Ltd, was used to defraud hundreds of investors of more than $10 million (approximately Rwf 13 billion). The court heard that the scheme collapsed after the company failed to deliver promised, and allegedly “impossible,” returns, leaving investors financially devastated.
Key Points of the Prosecution
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Illegal Operation: Manzi ran the online forex trading operation without a license. While he held a permit from the Rwanda Development Board (RDB), prosecutors stressed that it only authorised conventional currency exchange, not online forex trading.
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Fraudulent Inducement: Manzi allegedly misled investors with unrealistic promises, such as a 10% profit on a $50,000 investment within six months, coupled with a full capital return.
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Money Laundering: Funds were reportedly transferred to various accounts, an attempt to conceal the money taken from investors. The prosecution had initially sought a 15-year sentence for both Manzi and Akaliza.
Rejected Bail and Denials
The conviction follows the court’s earlier rejection of Manzi’s provisional release request in June. At that time, Manzi’s defence argued he needed temporary freedom to access $2.5 million allegedly frozen in offshore accounts in the Seychelles, which he claimed were essential to repaying his clients.
Prosecutors and lawyers for the victims dismissed this claim as an unsubstantiated “stalling tactic,” emphasizing the profound human cost of the alleged fraud, which included broken families and lost businesses.
Manzi and his defence maintained his innocence throughout the trial:
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Licensing Dispute: Manzi argued that Rwanda lacked a clear regulatory framework for online forex trading when he launched and that central bank officials had given him verbal permission to operate under his existing RDB certification.
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Wife’s Role: He denied that Akaliza was a co-owner, insisting she was merely an employee managing local operations.
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Accounts Freeze: He attributed his financial difficulties to the Rwanda Investigation Bureau (RIB) freezing his bank accounts in November 2022, which he said halted operations and payments to investors.
The verdict sends a strong message regarding the regulation of financial markets and the risks associated with unregulated investment schemes in Rwanda. Manzi has 30 days to appeal the verdict.
