10 Arrested for Defrauding American Nationals Sh67 Million in Fake Gold Scam

Detectives in Nairobi have arrested 10 suspects believed to have defrauded two American nationals of $534,000 (Sh67.3 million) in a fake gold scam.

The eight Kenyans, one Indian, and a Greek citizen were apprehended in two separate raids at Nairobi’s upmarket Kitusuru and Kilimani suburbs, the Directorate of Criminal Investigations (DCI) said.

During the operation, officers recovered two firearms and over 470 rounds of ammunition of 9mm and 5.56 mm caliber. 

Seth Steve Okuthe, the Director NewSkys Global Cargo Movers was the first to be arrested following a report made by Marjorie R. Grant, a US-based investor living in Los Angeles, California. 

His arrest led to the arrest of the second suspect Brunoh Otieno Oliende alias Oyugi at his palatial home in Kitusuru, where heavy metallic boxes suspected to be used in the storage of crucial exhibits were recovered. 

The other eight suspects Samuel Wathika Gathuru, Kaisarios Loamms (Greece citizen), Odhiambo Tobias Patrobas, Oketch Moses, Patrick Mugabe, Elisha Mbandi, Teddy Zamora and Siva Sakthi Veru (Indian citizen) were arrested in unmarked offices along Maalim Juma road within Kilimani area. 

Waithaka was found in possession of a Sigsauer P229 Pistol while his accomplice Okute was found in possession of a Baretta pistol loaded with 13 rounds of 9mm ammunition. A Gilboa rifle suspected to have been using the 5.56mm ammo was found missing during the raid.

A thorough search of the unmarked offices led to the recovery of three laptops, suspected mineral stones coated in gold and silver colors, a Cheque book issued by a local bank, briefcase containing metal analyzer tools, cash counting machines, rubber stamp inscribed Bukule Tereno Advocates Kinshasha and assorted metal rods.

“It is while the detectives were conducting the raid that they found the arrested Indian National Siva Sakthi Veru, who had just jetted into the country, in the process of being defrauded over Sh25 Million and saved him from the fraudulent deal,” DCI noted.

The suspects are currently in custody assisting detectives with investigations into the high-level fake gold scams targeting foreign investors.