US Government announces capture of wanted Kenyan in Sh 3.6 billion fraud

He has been in hiding for two years

A file photo of Nick Hanna, the United States Attorney for the Central District of California

The US Government’s Justice Department has announced the capture of Edward Martin Karuku - a Kenyan wanted in connection to a Sh3.6 billion fraud committed in the state of California in 2017.

The US Attorney General’s office in the Central District of California said Karuku, alias Paul McDaniel, was arrested after being extradited by Costa Rica where he run after committed the suspected crime.

The department indicated that he worked as an accounting manager before he allegedly stile money belonging to his employer’s client.

"McDaniel allegedly embezzled the funds from Hypermedia Systems, Inc., a media technology services firm based in downtown Los Angeles. McDaniel was initially an independent contractor for and then an employee of E-Times Corp., a downtown Los Angeles-based professional services firm providing accounting assistance to Hypermedia Systems,” the AG’s office said in a statement.

Karuku escape to Costa Rica

After learning that the Justice Department was after him, Karuku is believed to have escaped to Cost Rica where he hoped to hide from US authorities.

Karuku was arrested in Costa Rica in 2017 pursuant to a provisional arrest warrant filed by the United States. He was held in custody during extradition proceedings.

Each of the 10 counts of wire fraud charges in the indictment carries a statutory maximum penalty of 20 years in federal prison.

This case was investigated by the Federal Bureau of Investigation. The United States Attorney’s Office extends its appreciation to the Costa Rican authorities who assisted in apprehending the defendant, and the Department of Justice Office of International Affairs for assisting with the extradition as well as the United States Department of State Diplomatic Security Service and the United States Marshals Service for their assistance in this matter,” the AG’s statement added.


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