Lawyer, former KUSCCO chairman remanded for five days after denying Sh82.5 million fraud charges

A lawyer and former officials of Kenya Union of Saving and Credit Cooperatives (KUSCCO) have been charged at a Nairobi court with stealing Ksh 82.8 million.

Lawyer Jackline Atieno Omolo was charged jointly with former KUSCCO national chairman David Magutu Mwangi, George Ochola Owino and Mercy Muthoni Njeru with nine counts of fraud, stealing, uttering false documents and money laundering.

Appearing before the Milimani Senior Principal Magistrate Dolphina Alego, the four were charged that on diverse dates between October 2022 and April 2022, jointly with others who were not before the court conspired to steal by diverting money totalling 82,826,000 property of KUSCCO meant for purchase of land LR23269/35 at Nairobi within the republic of Kenya.

The four were also charged with money laundering contrary to Section (3)(b) (i)as read with Section 16 of the Proceeds of Crime and Anti-Money Laundering Act.

The charge sheet indicated that on diverse dates between October 9, 2020 and April 30, 2022, with others not before the court at Nairobi within the republic of Kenya with intent to dispose of, knowing or while reasonably ought to have known that the said money formed part of the proceed of crime received from KUSCCO entered in to agreement for sale of the land in order to conceal the nature and source of the money in the accounts held at Kenya Commercial Bank and M Oriental Bank under the account name of Jackline P.A Omolo & Advocates whilst having reasons to believe that the said monies were proceeds of crime.

In another charge, they were accused of stealing by directors and officers of the company and making of false documents which is against with the law.

They were further accused of making and uttering an agreement for sale of the land LR 23269/35 to make it appear authentic a fact which was false.

Separately, at an unknown time but the same period, Omolo allegedly uttered to KCB Bank University Way Branch a forged agreement for sale of the land LR 23269/35 of Catherine Wanjiku Mbugua purporting it to be genuine.

They denied the charges levelled against them by the prosecution.

Prosecution did not oppose the accused persons be released on bond.

Defence lawyers Caesar Wanjau, Okore Jayalo and Otieno Mugla asked the court for leniency considering the time when the allegedly offence took place and they had been complying to facilitate Investigations,

“Your honour I pray for lenient while giving bond terms and putting on notice the period when the alleged offence took place the accused had been complying with investigators,” Wanjau told the court.

Otieno Mugla representing Omolo said that the lawyer was caught in the crossfire and she was not involved in the fraud of Ksh 82,826,000.

He urged the court to grant her favourable bond terms given that she only prepared the sale agreement for the land in dispute.

The magistrate directed the accused persons to be remanded at Muthaiga Police Station for five days pending determination on whether they would be released on bond.

At the same time, the magistrate summoned former KUSCCO Managing Director George Otieno Ototo to appear in court on Tuesday next week to plead to the charges.