Kenyan National Convicted in the US Faces Lengthy Prison Term for Investment Fraud

58-year-old Kenyan citizen Paul Maucha has been convicted for orchestrating a fraudulent scheme that duped many victims into paying advance fees for investments.

The verdict has been announced by Attorney Matthew M. Graves, along with Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and FBI Special Agent in Charge Keri Farley from the FBI Atlanta Field Office. The scheme revolved around Maucha, in collaboration with an accomplice, implementing a deceptive plan through his controlled company, American Eagle Services Group Inc. (AESG). Court documents and trial evidence reveal that they misled victims with false claims about AESG, its assets, and financial resources.

Operating under AESG, Maucha pledged to provide funds to victims seeking loans, contingent on the payment of an advance fee. However, he deliberately misrepresented the purpose of the fee, and AESG falsely promised a refund if the loan application was unsuccessful. Unbeknownst to the victims, the fees were being misappropriated for personal use by Maucha and his partner. Maucha has been convicted of conspiring to commit wire fraud and participating in transactions involving unlawfully obtained funds.

Maucha faces a maximum sentence of 20 years for the conspiracy and wire fraud charges, and 10 years for the illegal fund transactions. The sentencing is scheduled for May 16, 2024, with a federal district court judge considering US Sentencing Guidelines and other legal factors in determining the final sentence. The announcement was jointly made by Acting Assistant Attorney General Nicole M. Argentieri, US  Attorney Matthew M. Graves, and Special Agent in Charge Keri Farley.

The FBI led the investigation, receiving substantial support from Homeland Security Investigations. The case is being prosecuted by Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section, along with Assistant US Attorney Christine M. Macey for the District of Columbia. Chief William E. Johnston from the Criminal Division's Fraud Section and Assistant US Attorney Joshua S. Rothstein from the District of Columbia have been integral to the investigation.