Court Orders Fuliza Scammers to Surrender Luxury Cars in Sh449m Heist

The High Court of Kenya has mandated the forfeiture of luxury vehicles and motorcycles belonging to seven individuals implicated in a sophisticated Sh449.6 million fraud scheme targeting a digital lending platform.

Justice Patrick Otieno on Wednesday issued the directive after the suspects failed to provide legitimate explanations for their acquisitions, declaring the assets proceeds of criminal activity. The court ruling transfers ownership of these assets to the Asset Recovery Agency (ARA), with explicit instructions for the National Transport and Safety Authority's Director-General to facilitate the registration transfer. The case emerged when NCBA Bank identified suspicious activity involving hundreds of delinquent loans taken through multiple SIM cards, which were subsequently deactivated.

The scheme affected approximately 123,000 phone lines, leading to arrests in Nakuru and Kitale. The defendants, including Gideon Kipkirui, Kipkemoi Isac, Edwin Kipkorir, Nelson Kamau, Gideon Kibet, Jonnes Kipkurui, and Gedion Kipkoech, face charges in the Anti-Corruption High Court. Several organizations, including Nakuru Equipment Supplies Ltd, Rensas Investments Ltd, My Credit Ltd, and NCBA, were identified as interested parties in the proceedings. According to ARA investigator Peter Mutisya, the perpetrators established approximately 19,000 fraudulent identities using legitimate identification documents from unwitting Kenyan citizens.

Their methodology involved borrowing money through digital wallets, transferring funds through secondary mobile numbers to personal bank accounts, and ultimately converting these funds to mobile wallet holdings. The investigation has uncovered a complex web of transactions across multiple platforms. For instance, Kipkirui's mobile number received funds from seven different subscriber accounts within just ten days in January 2022. The scale of the operation was significant, with one suspect, Kamau, processing Sh323.8 million through various accounts and subsequently purchasing a Subaru Forester.

His mobile number alone handled Sh16.05 million in transactions. Further scrutiny reveals that the suspects had failed to file tax returns for extended periods. When questioned about their wealth, they provided unsubstantiated explanations, citing business ventures, agricultural activities, and personal loans from acquaintances, none of which could be verified with documentary evidence.