10 arrested in Sh67million gold scam, 2 firearms, over 470 bullets recovered in Nairobi
Detectives have busted a cross-boundary fake gold scam syndicate involving Kenyans and foreign nationals and recovered a cache of weapons in two raids at their hideouts in Nairobi’s Kilimani and Kitusuru suburbs.
The suspects, eight Kenyans, one Greek national and Indian citizen were arrested in two separate raids by detectives attached to the Directorate of Criminal Investigations (DCI) for defrauding Sh67.3million (534,000 US Dollars) from two American citizens in a well-choreographed fake gold scam.
During the raid, the sleuths recovered two firearms, a Sigsauer P229 Pistol and Baretta pistol.
The officers also recovered over 470 rounds of ammunition of 9mm and 5.56 mm calibre, after
A Gilboa rifle suspected to have been using the 5.56mm ammo was found missing during the raid.
Preliminary police investigations have profiled Seth Steve Okuthe, the Director NewSkys Global Cargo Movers and Brunoh Otieno Oliende alias Oyugi as the key masterminds of the budding heist targeting foreign nationals.
They are said to have scammed Marjorie R. Grant, an American-based investor living in Los Angeles, California.
Okuthe was the first to be arrested in Kilimani before he led the investigators to Otieno’s palatial residence in Kitusuru, where heavy metallic boxes suspected to be used in the storage of crucial exhibits were recovered.
Other accomplices seized during the sting operation include; Samuel Wathika Gathuru, Kaisarios Loamms (Greece citizen), Odhiambo Tobias Patrobas, Oketch Moses, Patrick Mugabe, Elisha Mbandi, Teddy Zamora and Siva Sakthi Veru (Indian citizen).
“It is while the detectives were conducting the raid that they found the arrested Indian national Siva Sakthi Veru, who had just jetted into the country, in the process of being defrauded over Sh25million and saved him from the fraudulent deal.” An update by the office of Director of DCI Amin Mohamed read in part.
They were arrested in unmarked offices along Maalim Juma Road within the Kilimani area.
Following the raid, Waithaka was found in possession of a Sigsauer P229 Pistol while his accomplice Okuthe was found in possession of a Baretta pistol loaded with 13 rounds of 9mm ammunition.
A Gilboa rifle suspected to have been using the 5.56mm ammo was found missing during the raid.
A thorough search was also conducted in the offices leading to the recovery of 3 laptops, suspected mineral stones coated in gold and silver colours, a cheque-book issued by a local bank, a briefcase containing metal analyser tools, cash counting machines, rubber stamp inscribed Bukule Tereno Advocates Kinshasa and assorted metal rods.
It is while the detectives were conducting the raid that they found out that an Indiann, Siva Sakthi Veru, who had just jetted into the country, was in the process of being defrauded over Sh25 Million.
The suspects are currently in custody assisting detectives with investigations before being arraigned tomorrow.
Cases of gold smuggling, racketeering and scamming have been on the rise with Kenya being ranked at the centre of a regional fake gold racket allegedly aided by top government officials and politicians.
A report released last year by the Global Initiative Against Transnational Organised Crime (GiTOC) says the trade revolves around Nairobi, a major regional communications and financial hub.
Citing interviews with security agents, it said, “In Kenya, a leadership figure in a key political party, a former Cabinet Secretary and three MPs representing constituencies in Nairobi are alleged to be major figures in the fake-gold industry.” The report read in part.
The report revealed the scams are run by criminal networks operating in Nairobi and Kampala, with connections in South Sudan and the Democratic Republic of Congo.
Victims have been reported from across the globe from as far away as Malaysia, India, Dubai, Ukraine, Korea and the UAE.
The report builds on court papers in Uganda, where Lual Yor, a flamboyant South Sudanese businessman, was jailed in Uganda last year for masterminding a million-dollar scam.
A review from between early 2021 and March 2022 showed that in Kenya and Uganda, there were 18 incidents, where Sh2.9 billion (US$25 million) was lost.
Among the key cases was in January 2022, when a DRC national was arraigned in a Nairobi court.
He was accused of defrauding a Ukrainian of $8.32 million in fake gold, an amount equivalent to 136 per cent of the value of the country’s total gold production.
In 2019, President Uhuru Kenyatta was forced to defuse a diplomatic standoff with the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum.
This after the Sheikh was reportedly scammed of Sh400 million (over US$3.5 million) to buy 4.6 tonnes of gold that did not exist.
The gold was alleged to be sourced in the DRC and transported to the UAE through the Jomo Kenyatta International Airport.
