Lawyer Collins Osewe held as state oppose bond in Sh61.8million fake gold scam

City lawyer Alphonce Collins Odoyo Osewe has been charged with obtaining more than Sh61.8 million by false pretences in an alleged fake gold scam, with prosecutors opposing his release on bond on grounds that he is a flight risk.

Osewe was arraigned before the Milimani Chief Magistrate’s Court following his arrest at the court premises while representing Mukurweini MP John Kaguchia in an unrelated criminal matter.

The lawyer, who was arrested on Tuesday, August 4, 2026 by officers from the Directorate of Criminal Investigations (DCI), faces charges arising from alleged gold transactions involving two complainants and a purported deal for 400 kilogrammes of gold bars.

According to the charge sheet, Osewe and his co-accused, Patroba Odhiambo Tobias alias “Ishmael”, allegedly obtained USD260,400, equivalent to about Sh35.7 million, from businessman Bernard Shaunda Aete between May 1 and May 9, 2023.

The prosecution alleges that the two falsely represented that they were in a position to sell Aete 400kg of gold, a claim they allegedly knew to be false.

Osewe separately faces a charge of obtaining Sh26.1 million from Adeyeye Enitan Ogunwusi between May 4 and May 5, 2023, through what prosecutors describe as the same false representation.

The alleged transactions bring the amount at the centre of the false pretences charges to more than Sh61.8 million.

The lawyer also faces several charges under the Proceeds of Crime and Anti-Money Laundering Act relating to the alleged acquisition and use of suspected proceeds of crime.

Prosecutors allege that Osewe acquired and subsequently transacted the Sh26.1 million despite knowing, or having reason to believe, that the money constituted proceeds of crime.

In separate counts, the prosecutor alleges that Osewe and Tobias transacted the USD260,400, claiming the funds were proceeds of crime intended for the purchase of gold bars.

The prosecution has asked the court to deny Osewe bond, citing his alleged failure to attend court after being released on police cash bail.

In an affidavit, DCI investigating officer Corporal Dennis Mugambi said Osewe was arrested in August 2025 and released on Sh50,000 police cash bail pending legal advice from the Office of the Director of Public Prosecutions.

However, the officer alleges that Osewe subsequently failed to appear for plea taking despite being notified of the proceedings.

Investigators allegedly made repeated attempts to summon him, but prosecutors claim he ignored the requests. A warrant of arrest was later issued.

The DCI also told the court that Osewe’s previous residence could not be traced after investigators were informed that he had moved out.

The State is also seeking his immigration records to verify his claim that he was outside the country when he was required to appear in court.

The prosecution argues that his previous conduct, coupled with his allegedly unknown residence, creates a substantial risk that he could abscond if released.

The court is expected to rule on the bond application tomorrow Thursday, August 6, 2026.

Osewe has opposed the state’s application, with his lawyers maintaining that he will attend all court proceedings.