Detectives from the Directorate of Criminal Investigations (DCI) have arrested three individuals in connection with a fake gold scandal.
DCI in a statement issued on Saturday, August 31, 2024, night, said Allain Mwadia Nvita, Daniel Ogot and Frank Kateti had scammed two foreign nationals, Marco Colombo Conti and his business associate Satbinder Singh, over Ksh340 million in a fake gold deal.
The anti-crime agency says the three are currently being detained at a Nairobi detention.
How foreigners were scammed
The DCI has narrated that the scam was started in June, 2022, when Marco, a business associate of Satbinder Singh, travelled to Kenya with the intention of buying 100kg of gold from Allain Mwadia Nvita.
Marco, the DCI says, paid about 400,000 US dollars (Ksh51.6 million) in duty and other charges through a law firm in the name of Squire AfriLaw Consult Limited, at the start of their engagement.
In return for footing the charges on behalf of the seller, the anti-crime agency says Marco was given 12kg of gold which the seller said he was free to carry out as hand luggage and sell to recover the funds he had paid and any other fees that would be required in the course of the transaction.
Fake gold deal
However, he was shortchanged when the seller informed him as he was just about to leave, that he could not go with the same 12kg of gold since it was part of the bigger consignment he was purchasing from him, making a total weight of 112kg.
DCI says the seller then advised the buyer that he could keep the same safely in a safe box at Mysafe Vaults at the Village Market in Gigiri, Nairobi which he accepted.
The DCI goes ahead to narrate that the foreigner left Kenya after being convinced that the deal was viable, and only returned on February 5, 2024, in the company of his associate Satbinder Singh who was interested in buying the gold in question.
On arrival, DCI says, Satbinder was introduced to Allain Mwadia Nvita who was the gold seller, Lehman John Raymond, Daniel Ogot of Patvad Trading Co. Ltd and Frank Kateti, a Tanzanian agent.
The team then proceeded to discuss with the seller the possibility of buying the 112kg consignment whereby the seller, Allain Mwadia, convinced them that he was willing to provide 31kg of gold to be carried by them out of the country and this would cover for the money that Marco had paid in 2022, and also for the expenses that Satbinder would further incur in the process of shipping out the 112kg after the same was bought by Satbinder.
Daniel Ogot is said to have then invoiced Satbinder’s company; Asianic Limited an amount of 162,240 Euros (Ksh23.2 million) and 548,830 Euros (Ksh78.4 million) respectively and instructed that these amounts be paid into an escrow account held at Stanbic Bank in the name of Mosota Abunga & Associates Advocates, LLP.
Foreigners shortchanged
The DCI says that as the foreigners left the country, Daniel Ogot and Frank Kateti promised to bring with them the consignment and the necessary documents to the Airport but they failed to honor their part of the bargain.
With no option left, the foreigners flew out and while in Italy, Daniel Ogot informed them that an error in declaring the weight of the consignment had led to confiscation by the Customs department and in addition, their license had also been suspended.
“Further, Ogot explained that the Customs department had imposed on his company a fine equivalent to 20% of the value of the consignment amounting to 1,562,000 US dollars which if not paid, then the entire consignment was at the risk of being confiscated.
“Satbinder flew to Kenya and paid out 1,438,460 Euros through the escrow bank account in the names Mosota Abunga & Associates Advocates, LLP hoping to rescue the said gold but he knew not that he was still being defrauded,” the DCI narrated.
The DCI says the three suspects have been arraigned as file on investigations into the conduct of the advocate for breach of the terms of their letter of engagement for legal services and escrow account management has been forwarded to ODPP for perusal and advice.
