DCI arrest 3 suspects behind fake gold scam in which foreigners lost Sh341M

According to the DCI, Allain Mwadia Nvita, Daniel Ogot and Frank Kateti scammed Marco Colombo Conti and his business associate Satbinder Singh in a fake gold scam that left the two foreigners sh340million poorer.

The well-crafted scam started in June 2022 when Marco jetted into the country with the intention of buying 100kg of gold from Allain Mwadia Nvita.

The foreign national parted with about 400,000 US dollars (Sh51.6 million) paid via a law firm named Squire AfriLaw Consult Limited.

Suspects fail to deliver

The amount was to cover duty and other charges in the deal and Marco was to recover the amount from the sale of 12kg of gold which Allain was to provide for him to fly out with.

“This however did not happen since when 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.” DCI noted.

DCI arrest 3 suspects behind fake gold scam in which foreigners lost Sh341M DCI arrest 3 suspects behind fake gold scam in which foreigners lost Sh341M Pulse Live Kenya

Marco jetted back into the country on February 2024 in the company of his business partner, Mr Satbinder Singh and met Allain Mwadia Nvita with the intention of purchasing gold.

Businessmen requested to pay more millions

Once again, the businessmen were requested to pay 162,240 Euros (Sh23.2 million) and 548,830 Euros (Sh78.4 million) respectively for duty and other charges with the agreement that 31kg of gold would be provided for the foreigners to carry out of the country.

The gold would cover for all the payments made so far in the deal and on February 9, 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.

Payment of 1.5 Million USD to suspects

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.

Still convinced that the deal was legit, 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.

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 who not only confirmed to him that the fine was authentic but also supplied him with some of the ownership documentation.

DCI arrest 3 suspects behind fake gold scam in which foreigners lost Sh341M DCI arrest 3 suspects behind fake gold scam in which foreigners lost Sh341M Pulse Live Kenya

Still hoping to receive the gold, the businessman jetted back to the UK where the suspects continued to take him in circles until he eventually contacted the Commissioner General KRA to establish the authenticity of the documents provided.

The matter was referred to the DCI and upon thorough investigations, the documents were established to be fake.

DCI smoked out the suspects from their hideout and arrested them.