DCI Busts Multi-Million Dollar Gold Fraud Targeting Foreigners

Kenyan authorities have apprehended a suspect believed to be part of a complex gold-trading fraud.

The arrest is based on a complaint filed by a Georgian national who alleges he was swindled out of over $6 million in a deceptive deal involving a massive quantity of gold. The Directorate of Criminal Investigations (DCI) launched an investigation after the Georgian national reported being defrauded by a group posing as gold miners. The victim claims he had invested $6 million in a trade deal for 161,000kg of gold bars, supposedly to be transported from Ghana to Kenya for official documentation and storage.

The transaction was allegedly facilitated by a letter of administration issued by a Ghanaian court. However, DCI's investigation reveals a web of deceit from the outset. The detectives have found no evidence of any gold, real or counterfeit, being transported from Ghana. Instead, a raid on the suspect's residence in Nairobi uncovered a significant amount of counterfeit US currency and a stash of fake gold nuggets. This suggests the victim was targeted by a sophisticated ring of fraudsters operating both locally and internationally.

The investigation exposes the fraudsters' scheme. They exploited Kenya's strategic location as a transit point for African gold destined for the United Arab Emirates and other countries. By posing as legitimate gold miners and manipulating the victim's trust, they were able to orchestrate a multi-million dollar scam. In December 2023, detectives from the Directorate of Criminal Investigations (DCI) successfully thwarted a large-scale fraud attempt in Nairobi. A private residence in Kileleshwa became the target of a raid aimed at apprehending seven individuals suspected of orchestrating a scheme to defraud two Malaysian citizens of a staggering Ksh2.85 billion.

According to a DCI statement, the arrested individuals were allegedly part of a wider conspiracy involving a multinational network. The investigation revealed collaboration between the apprehended suspects and two security guards employed by a reputable security firm. The group also reportedly included a Congolese national and four Kenyan citizens. Authorities believe these individuals were acting in concert with two Cameroonian accomplices to execute the elaborate scam. The fraudulent scheme centred on the sale of counterfeit gold to unsuspecting Malaysian victims.