Two detained for 14 days for allegedly defrauding foreigner Sh100million in a fake gold scam
Two men suspected to have masterminded a plot to defraud Sh100million from a foreign investor in a fake gold deal have today been arraigned before the Kibera Law Courts in Nairobi as police sought to incarcerate the duo for fourteen days pending completion of investigations.
In a miscellaneous application filed before a Kibera Court by Inspector of police Alexander Makomah attached to the DCI headquarters, the officer said he needs more time to investigate Nicholas Ndolo and Thomas Otieno Ngoe in a case of they are accused of conspiring to commit a Felony Contrary to Section 393 of the Penal Code.
The officer told the court that the suspects were arrested today, March 14, 2023 within Nairobi City County on suspicion of having committed the offence.
He told Senior Principal Magistrate Charles Mwaniki that the complainant was introduced to Ndolo as a business man dealing in gold business.
After formal introductions, they agreed that the complainant would purchase 3000kg of gold at USD 41,000 Per kg totaling to USD 123,000,000 (Sh12billion).
The court was told that Ndolo provided Equity Bank Account to the complainant account name Africorp Consultants Limited an the transaction account for the business.
“The complainant later instructed his bank in U.S.A. to wire the sum of USD 1,000,000 on 10th February 2023 by way of a swift bank transfer into the account Ndolo gave”, the officer told court.
Ndolo confirmed to have received the money and would then contact the complainant to witness the packaging of the gold in readiness for shipment to Dubai.
The officer said the complainant waited in vain for an appointment to witness the packaging which then prompted him to request for documentations in regard to the purchase of the said gold.
The complainant later realised that some of the documents such as the customs entry indicated on the declaration form dated 8th March 2023 was not genuine.
Ndolo is said to have started to avoid meeting the complainant and later started threatening him with deportation from Kenya.
This prompted the complainant to make a report at DCI Operations Support unit.
“Upon investigations at Equity Bank where the money was wired, it was discovered that it is operated by Otieno and that the whole amount has been transferred to other accounts.
Otieno was arrested and a quick search was conducted where a firearm was recovered from the vehicle they were driving.
The recovered firearm is believed to have been used to commit crimes and is therefore subject for further forensic analysis as well as to establish how it was acquired by Otieno.
The officer further said that Ndolo upon learning that he was being sought, surrendered himself at DCI headquarters where he was subsequently arrested for interrogation to establish his involvement in supposedly gold business that there never was.
Investigations into the matter are not yet complete and the applicant through its investigators intend to; recover the monies defrauded from the complainant, recover documents that the respondents used as instruments in committing offences and subject them to necessary forensic analysis, record statements and Subject the recovered firearm to forensic analysis, the investigating officer said.
The court was informed that the police intend to arrest other suspects and the release of the respondents would interfere with the process.
The court ruled that the two be released on a Sh500,000 cash bail plus one contact person and they were further ordered to report to the investigating officer every Monday and Thursday.
The case will be mentioned 3rd April, 2023.
