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Court sanction recovery of proceeds of crime from two firms linked to profiled fraudster Chris Obure

The High Court  has ruled to forfeit more than KSh 18.9 million held by two jet leasing firms, Cullinan Private Jets Corp and Glo Jet International Limited, following suspicions of their involvement in a complex international money laundering syndicate. The decision marks a significant victory for the state in the ongoing battle against financial crimes.

In a ruling delivered on Monday by Justice Patrick Otieno,declared that the sums of money held in various accounts belonging to the two firms, which are subsidiaries of United States-registered companies represented locally by businessman Chris Obure, were proceeds of crime.

These funds, amounting to USD 54,257.85 and KSh 696,070.70 in the account of Cullinan Private Jets Corp at I&M Bank, as well as USD 24,712.61 and KSh 1,134,691.33 in the account of Glo Jet International Limited at Ecobank, were ordered forfeited to the government.

“The sum of USD 54,257.85 and KSh 696,070.70 held in the name of Cullinan Private Jets Corp domiciled at I&M Bank Limited, as well as the sum of USD 24,712.61 and KSh 1,134,691.33 held in the name of Glo Jet International Limited at Ecobank, are proceeds of crime and are hereby ordered forfeited to the state,” Justice Otieno ruled.

The court ordered the two banks to transmit the forfeited amounts to the Asset Recovery Agency within seven days, once served with the formal court order.

The case stems from a complaint filed by a Mr. Rondell Fletcher, a California-based businessman, who alleged he was defrauded by the two firms after he made substantial payments for cargo and passenger charter services that were never delivered. Fletcher claimed that in August 2023, he paid USD 412,746.55 to the firms, expecting the charter services to transport goods from Nairobi to Dubai. However, the flight was never booked, and the money was allegedly diverted for other purposes, raising suspicions of money laundering.

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“The applicant has demonstrated reasonable grounds to believe that the funds were proceeds of crime. The movement of money and the intricate shareholding structure between the respondents and interested parties raised concerns of a money laundering scheme,” said Alfred Musalia, an investigator in the case, during cross-examination.

The investigation revealed that although the funds were initially transferred to Kenya, only a portion of the money, USD 333,718.35, was deposited into the firm’s local accounts. There was no evidence of a jet being available for charter, nor any signs of the respondents engaging in legitimate air transport services.

In his defense, businessman Chris Obure, who represents the firms locally, argued that the funds were received in the ordinary course of business and were part of a legitimate transaction. “On August 1, 2023, we received an inquiry from Mr. Fletcher for cargo and passenger charter services. He paid the agreed amount, and we sent the necessary funds to cater for the flight preparations,” Obure explained.

However, the court was unconvinced by the explanation. Justice Otieno pointed out that the respondents failed to produce any tangible evidence that they had the required facilities, including a licensed jet, to carry out the services they had promised. “Once Mr. Fletcher raised concerns about being defrauded, it was incumbent upon the respondents to prove that the funds were obtained through legitimate business dealings, which they failed to do,” the judge stated.

The court further emphasized that under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), the burden of proof in such cases lies on the respondents to show that the funds were not derived from illegal activities. Given the lack of sufficient evidence and the red flags raised during the investigation, the court found that the funds in question were indeed proceeds of crime.

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“Based on the investigation and the evidence presented, the court finds there is a reasonable suspicion that an offense under Kenyan law has been committed,” Justice Otieno concluded. “As such, the funds must be forfeited to the state to deter criminal activities and protect the interests of the public.”

In addition to the forfeiture of the funds, the court awarded the costs of the suit to the applicant, the Asset Recovery Agency, which has been spearheading the case.

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