By The Weekly Vision Team
Detectives in Kitu County have uncovered another pyramid scheme that defrauded unsuspecting individuals out of millions of shillings. The company, Algo AI International, claimed to be a Malaysian-based, multi-billion-shilling firm specializing in AI trading in US dollars. It promised investors daily returns of 1% of their investment. In a particularly suspicious offer, those willing to invest at least Sh1,000 daily were guaranteed a 200% return, meaning an investment of Sh1,000 per day would allegedly earn Sh2,000 in profits on top of the original amount.
Kitui Directorate of Criminal Investigations (DCI) Officer Samuel Bett confirmed that seven suspects had been arrested and charged last week. The accused—Festus Ruto, Festus Lee, Japhet Koech, Aron Bii, Duncan Nderitu, Malon Bett, and Felix Kiprotich—appeared before Chief Magistrate David Mburu and were released on Sh80,000 bail each. They faced charges for operating as certified investment and financial analysts without valid licenses. Their case is set for mention on September 24, when a hearing date will be determined.
Bett revealed that the suspects had been holding seminars to recruit members into the suspected pyramid scheme, Algo AI, by inviting them to lectures held in upscale hotels and conference centres. Their operations extended across Kitui, Wote, Emali, and Kibwezi in Makueni and Meru counties, where they lured unsuspecting victims between July and September 2024.
The suspects had already recruited several members: 31 in Meru, 21 in Emali, 31 in Wote, and 29 in Kibwezi, all contributing money to the scheme. The recruits were promised a daily return of 1% of their investment and a 30% monthly interest. For instance, someone contributing Sh1,300 monthly was promised Sh6,500 in returns. Bett urged the public to be cautious of anyone offering such high rewards, warning that fraudsters are increasingly active in the country. He also called on his counterparts in Makueni and Meru to remain vigilant.
This discovery came just two days after detectives in Kasarani, Nairobi, arrested Pascaline Peter, also known as Passy Ma Trevor, for allegedly defrauding Kenyans of Sh350 million through a real estate Ponzi scheme. The 36-year-old suspect was apprehended at her hideout in Kantafu, Machakos County, and is being held at Kasarani Police Station awaiting arraignment.
According to police reports, Pascaline ran an unlicensed money-lending business, violating the Banking Act. She lured investors with promises of a 30% return on their savings and convinced them to deposit large sums into accounts at multiple banks, including Equity Bank, Coop Bank, Stanbic Bank, and Kingdom Bank. She claimed to be running a successful real estate venture but disappeared after collecting the money, switching off her phone, and going into hiding.
Preliminary investigations revealed that Pascaline defrauded over 200 victims, with 106 formal complaints already filed. After the victims realized they had been duped, they reported the scam to the DCI, who acted swiftly to arrest her. Detectives are seeking a 21-day detention period to continue investigations into her bank accounts, trace the funds, and identify the sources of the deposits.
