Three suspects were arrested in Nairobi for defrauding Ksh340 million from two foreign nations in a fake gold scam.
In a statement on August 31, 2024, the Directorate of Criminal Investigations (DCI) explained that the three were arrested during a security operation.
The scam was started in June, 2022 when Mr Marco Colombo Conti, a business associate of Mr Satbinder Singh, traveled to Kenya with the intention of buying 100kg of gold from Mr Allain Mwadia Nvita.
For a start, Mr Marco paid about 400,000 US dollars in duty and other charges through a law firm in the name of Squire AfriLaw Consult Limited.
In return for footing the charges on behalf of the seller, he 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.
This however did not happen, as he was just about to leave, the seller informed him that he could not leave 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.
He then advised him that he could keep the same safely in a safe box at Mysafe Vaults at the Village Market in Gigiri, Nairobi which he accepted.
Convinced that the gold deal was still viable, he left Kenya and returned on 5th February, 2024 in the company of Mr Satbinder Singh who was interested in buying the gold in question.
On arrival, 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 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.
This would cover for the money that Marco had paid in the year 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.
On the same day of 5th February, 2024, Daniel Ogot invoiced Satbinder’s company; Asianic Limited an amount of 162,240 Euros and 548,830 Euros 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.
On 7th February, 2024, the same agent again Invoiced Asianic Limited a further 14,112 Euros being freight charges for the 112kg gold consignment.
All these payments were made on 8th February, 2024 after their private agent Frank Kateti advised that everything was okay and the 31kg of gold were deposited into Mysafe Vaults at Village market.
On 9th February, 2024, the foreign nationals collected 31kg of gold from Mysafe Vaults at the Village Market and proceeded to the Clearing Agent (Daniel Ogot) office where the box was opened and the consignment divided into two and packed into blue metallic boxes that were sealed, signed and stamped.
As they left for the Airport, 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.
He was then taken to Forodha house within JKIA where he met a lady namely Susan Oketch, who he was informed was working with the customs department.
Susan confirmed to him that the fine was authentic and supplied him with some of the ownership documentation.
Satbinder traveled back to the UK on 20th March, 2024 and the scammers continued to take him into circles to a point of even sending him fake airway bills showing that the consignment would be delivered to him in Ireland.
Later he became suspicious that the deal would not materialize which prompted him to write to Commissioner General KRA to establish the authenticity of the documents provided.
The matter was referred to the DCI and upon undertaking in-depth investigations, it was established that; all the documents provided to the complainant were forged.
The persons who were presented as customs officials were not KRA employees, Patvad Trading Limited was not licensed by the Ministry of Mining, Blue Economy and Maritime Affairs to trade in any minerals.
In addition, the airline company confirmed that the airway bills did not originate from them and that cumulatively, the complainant had been defrauded a total of 2,168,258.91 Euros equivalent to Ksh 341,949,292.
