In a significant crackdown, three individuals are now detained in Nairobi after being apprehended by detectives for orchestrating an elaborate fake gold scam that defrauded two foreign nationals of more than Ksh 340 million.
The intricate scheme began in June 2022 when Mr. Marco Colombo Conti, a business partner of Mr. Satbinder Singh, visited Kenya with plans to purchase 100 kilograms of gold from Mr. Allain Mwadia Nvita. Trusting the transaction, Marco paid approximately 400,000 US dollars in duties and associated fees through a law firm named Squire AfriLaw Consult Limited. In return, he received 12 kilograms of gold, which he was initially told he could carry as hand luggage to recover his upfront costs.
However, just as Marco was preparing to leave, Nvita informed him that the 12 kilograms of gold were part of a larger 112-kilogram consignment he was purchasing.
He advised Marco to store the gold in a safe at Mysafe Vaults, located at Village Market in Nairobi. Believing the deal was still valid, Marco agreed and left Kenya.
The situation escalated when Marco returned to Kenya on February 5, 2024, this time accompanied by Mr. Satbinder Singh, who was interested in finalizing the gold purchase.
They met with Nvita, the supposed seller, along with associates Lehman John Raymond, Daniel Ogot of Patvad Trading Co. Ltd, and a Tanzanian agent, Frank Kateti.
During their meeting, Nvita assured them that 31 kilograms of gold would be provided to cover Marco’s previous payments, with the remaining 81 kilograms to be shipped after the sale was completed.
On February 5, 2024, Ogot invoiced Satbinder’s company, Asianic Limited, for 162,240 Euros and 548,830 Euros, instructing them to deposit the funds into an escrow account at Stanbic Bank, managed by Mosota Abunga & Associates Advocates, LLP. Additional freight charges of 14,112 Euros were invoiced on February 7, 2024. All payments were made promptly by February 8, 2024.
On the following day, February 9, 2024, the foreign nationals retrieved the 31 kilograms of gold from Mysafe Vaults. The gold was then divided into two parts, packed into sealed blue metallic boxes, and readied for transport.
However, as they prepared to head to the airport, Ogot and Kateti, who had promised to deliver the consignment and accompanying documents, failed to show up.
Left with no other choice, the foreigners departed Kenya without the gold.
While in Italy, Marco and Satbinder were informed by Ogot that the gold consignment had been confiscated due to a mistake in its declared weight, and that his company’s license had been suspended.
Ogot demanded a fine of 1,562,000 US dollars, equivalent to 20% of the consignment’s value, threatening that the gold would be permanently seized if the fine wasn’t paid. Satbinder, still believing in the legitimacy of the deal, returned to Kenya and paid 1,438,460 Euros through the escrow account.
Satbinder was then taken to Forodha House at Jomo Kenyatta International Airport (JKIA), where he met a woman identified as Susan Oketch, who was falsely introduced as a customs official. She confirmed the fine was genuine and provided ownership documents for the gold. However, as time passed, Satbinder began to suspect the deal was fraudulent, especially after receiving fake airway bills claiming the consignment was en route to Ireland. Concerned, he reached out to the Commissioner General of the Kenya Revenue Authority (KRA) to verify the authenticity of the documents.
The matter was referred to the Directorate of Criminal Investigations (DCI), who launched an extensive investigation.
They discovered that all documents given to Satbinder were forgeries, the individuals presented as customs officials were not KRA employees, and Patvad Trading Limited was not authorized to trade in minerals. Moreover, the provided airway bills were confirmed to be fake.
The DCI’s investigation revealed that the complainants were defrauded a total of 2,168,258.91 Euros, equivalent to Ksh 341,949,292. The three suspects have since been brought to court, and the investigation into the lawyer managing the escrow account has been forwarded to the Office of the Director of Public Prosecutions (ODPP) for further action.
“This case highlights the extreme lengths to which fraudsters will go,” a lead investigator noted. “It serves as a critical reminder for investors to exercise caution and thoroughly vet any transactions involving gold in Kenya.”
As investigations continue, authorities are urging potential investors to be vigilant and report any suspicious activity related to gold transactions to prevent falling victim to similar scams.