Canadian accused of defrauding American investor Sh46 million released on Sh10 million bond

A Nairobi court has released a Canadian national charged with defrauding an American investor Ksh 46 million on bond of Ksh 10 million with a surety of similar amount.

He was further granted alternative cash bail of Ksh 5 million with three Kenyan contact persons.

While releasing Phillip Willing Knight, Milimani Chief Magistrate Lucas Onyina noted that the prosecution did not oppose his release on bond,

“I have noted that the prosecution did not oppose the release of the accused person on bond,” the magistrate said.

The magistrate further ordered Knight to deposit his passport in court and scheduled the matter for mention on April 17.

Knight was charged with defrauding an American investor Casey Drew Cain Ksh 46 million in US dollars promising to assist him export gold to Dubai.

He was also charged with defrauding Cain by promising to link him up with a World Food Programme (WFP) project.

Knight was presented before Milimani chief magistrate Lucas Onyina where he denied defrauding Cain of the colossal sums through pretenses he would invest it through his two companies- Sunshine Minerals Canada Limited (SMCL) and Hallo Global Project Management Limited.

It is alleged that he had promised Cain good returns but “he never delivered any of the projects or exporting gold to Dubai.”

The director of public prosecutions (DPP) through  prosecuting counsel Joyce Olajo pleaded with the court to detain the suspect for 10 days, to enable police officers from the Directorate of Criminal Investigations (DCI), serious crimes department, complete investigations.

The court declined the application and directed Knight be held at Kilimani Police Station until March 27.

The court heard that he committed the alleged fraud between September and October 2024.

The prosecution said Mr Knight approached Cain and introduced him to investment opportunities. He then requested him to contribute funds to finance the projects.

“On September 27, 2024 Cain gave Knight USD 25,000 at Connect Coffee in his (Knights’) capacity as Manager Sunshine Minerals Canada Limited. Knight signed an acknowledgement note,” Ms Olajo told the court.

On October 3, 2024 Knight approached Cain again on a new investment, a charity project under his two companies Sunshine and Hallo, for empowerment of women in Kenya.

“Knight told Cain the project would be impactful and beneficial to Kenyan women as it would equip them with skills and knowledge in various fields,” Ms Olajo divulged.

The suspect then offered Cain the position of Project Manager of the programme titled-World Food Programme (WFP).

The investor was asked to pay USD 16,300.

“Knight promised Cain the WFP project would earn them billions in accordance with the WFP whose a profit projection was USD 125 million (KSH16,125,000,000),” the magistrate heard.

The court further heard for a start Cain paid USD 16,300 at Knights’ Palm Springs residence along Dennis Pritt Road Nairobi.

Mr Onyina was further told Knight introduced Cain to the gold trade and requested him to contribute USD 525,000.

The two signed a deposit collaboration agreement (DCA).

On October 10, 2024, Knight and Cain signed a contract referenced SSM10102024/Southbrook in which the complainant (Cain) tasked with funding the project through his long term partner Dr William B Woodward.

Dr Woodward wired USD 281,000 from his Wells Fargo Bank account in USA.

This money was to finance the WFP project, the magistrate heard.

Therefore, Knight requested Cain to give USD ($) 35,000 to cover administrative costs for the WFP project. The money was paid at the Offices of Sunshine Minerals Canada Limited located at Kilimani Road Nairobi.

“Cain paid Knight a total of USD 357,300 (KSh46,091,700) for the projects yet none was delivered,” Olajo told the court.

The magistrate heard police are yet to record a statement from Dr Woodward, get bank statements from Wells Fargo and subject the suspects’ cellphones to forensic analysis.

However, Knight denied vehemently that he is flight risk saying “I am a resident of Nairobi, married to a Kenyan.”

He said their union has been blessed with three children- two girls and a boy.

“You honor my wife is in court and my brothers-in-law are here in court to prove that I cannot run away from my family,” Knight stated.

The American presented to court a marriage certificate and prayed to be freed on bond.

The court directed Mr Knight be remanded in custody for interrogation and recording of witness statements by the directorate of criminal investigation (DCI) officers until March 27 2025.

The matter will be mentioned on April 17, 2025, for pre-trial and directions.