A lawyer and a gold dealer were Wednesday arraigned with defrauding an American businessman of Sh130 million in a fake gold deal.
Lawyer Thomas Otieno Ngoe and businessman Nicholas Otieno Ndolo appeared before Kibera senior principal Magistrate Charles Mwaniki where the prosecution sought more days to detain them to enable them to complete their investigations.
The police through inspector Alexander Makomah were asking to be given 14 days to detain them as they complete their investigations.
According to an affidavit signed by the investigating officer, the two were to sell gold valued at Sh16 billion to the American businessman.
“That after formal introductions, they agreed that the complainant would purchase 3000 kg of gold at USD 41,000 Per kg totaling to USD 123,000,000,” read part of the affidavit.
This is the latest such gold scam to happen in a series in the country that has seen unsuspecting businessmen lose millions to the scammers.
It comes amid a plea from police to foreigners seeking to purchase gold from the country to seek advice from their embassies and government offices.
The two were arrested on March 14 2023 in the Kilimani area on suspicion of having committed an offense of conspiracy to commit a felony contrary to section 393 of the Penal Code.
The complainant told police he was introduced to the Ndolo as a businessman dealing in the gold business.
Ndolo then provided an account in a local bank account name Africorp Consultants Limited
According to police, the complainant later instructed his bank in the U.S.A. to wire the sum of USD 1,000,000 on February 10, 2023, by way of a swift bank transfer into the account stated.
According to investigations the businessman confirmed to have received the money and would then contact the complainant to witness the packaging of the gold in readiness for shipment to Dubai.
He had arrived in Kenya for the deal.
”The complainant waited in vain for an appointment to witness the packaging which then prompted him to request documentation in regard to the purchase of the said gold,” said police.
The complainant later realized that some of the documents such as the customs entry indicated on the declaration form dated March 8, 2023, were not genuine.
It was then that Ndolo started to avoid meeting the complainant and later started threatening him with deportation from Kenya.
This prompted the complainant to make a report at DCI Operations Support Unit which report was then booked at Capitol Hill Police Station upon investigations at Equity Bank where the money was wired, it was discovered that it is operated by the lawyer respondent herein and that the whole amount has been transferred to other accounts.
Upon the arrest of the lawyer, a quick search was conducted and a firearm was recovered from the vehicle they were driving.
”The recovered firearm is believed to have been used to commit crimes and is therefore subject to further forensic analysis as well as to establish how it was acquired by the 2nd respondent here.”
On learning that he was being sought, Ndolo surrendered himself at DCI Headquarters where he was subsequently arrested for interrogation to establish his involvement in a supposedly gold business that there never was.
The police said Investigations into the matter are not yet complete and they intend to recover the monies defrauded from the complainant and documents the accused used as instruments in committing offenses and submit them to necessary forensic analysis.
Police further plan to conduct identification parades at which the complainant and other persons subject the recovered firearm to forensic analysis and ascertain whether the lawyer is a licensed firearm holder, police said.
Police have urged Embassies and High Commissions to advise their nationals coming in for business, Kenya does not hold any huge consignments of gold.
