Benard Gitonga, an investigating officer with ARA, told the High Court that investigations revealed Mose and Company’s client account had received USD 1,000,000 as payment for the supply of 84 metric tonnes of Tantalite Niobium Ore. However, the firm did not fulfil its contractual obligations and instead utilised part of the funds for purposes other than those agreed upon. Further investigations, ARA claims, exposed a complex fraud and money laundering operation orchestrated by Mose and Company, its directors, and associates—rendering the funds in question proceeds of crime, which should be preserved and forfeited
The Assets Recovery Agency (ARA) has filed an application seeking the forfeiture of KSh 123 million, suspected to be proceeds of crime, currently held by the law firm Mose and Company Advocates.
In an application before the High Court’s Anti-Corruption Division, ARA claims that the funds, held in both US dollars and Kenyan shillings at Sidian Bank, are the result of a complex money laundering scheme.
“There are reasonable grounds and evidence demonstrating that the funds held by Mose and Company in the specified bank account are direct or indirect benefits, profits, and/or proceeds of crime obtained from a complex money laundering scheme and are liable to be preserved pending the filing, hearing, and determination of the intended forfeiture,” court documents state.
The funds in question amount to $949,463.41 (equivalent to KSh 122,528,253.06) and KSh 2,469,558, which were deposited for the purported purpose of exporting a rare metal.
ARA informed the court that its investigations established that Mose and Company, acting as an escrow agent, had entered into a sale and purchase contract with Sanjola Company Limited for the supply of 84 metric tonnes of Tantalite Niobium Ore, valued at USD 1,000,000, in favour of Yingcheng (Shenzhen) International Trade Company Limited. However, the law firm allegedly failed to deliver the metal as per the contract and instead acquired the funds through deception and money laundering under the guise of selling Tantalite Niobium Ore.
The agency asserted that it is in the public interest for the court to grant the orders sought and for the funds to be forfeited.
Benard Gitonga, an investigating officer with ARA, told the High Court that investigations revealed Mose and Company’s client account had received USD 1,000,000 as payment for the supply of 84 metric tonnes of Tantalite Niobium Ore. However, the firm did not fulfil its contractual obligations and instead utilised part of the funds for purposes other than those agreed upon.
Further investigations, ARA claims, exposed a complex fraud and money laundering operation orchestrated by Mose and Company, its directors, and associates—rendering the funds in question as proceeds of crime, which should be preserved and forfeited.
“The investigations have revealed that the funds in issue were unlawfully acquired and are, therefore, proceeds of crime pursuant to the provisions of the Proceeds of Crime and Anti-Money Laundering Act,” ARA told the court.
According to the anti-money laundering agency, its findings indicate that Mose and Company executed an elaborate scheme aimed at concealing and disguising the nature, source, movement, and final destination of the funds—actions consistent with money laundering.
“There are reasonable grounds and evidence demonstrating that the funds held by the respondent in the specified bank account are direct or indirect benefits, profits, or proceeds of crime obtained from a complex money laundering scheme and are liable to be forfeited to the applicant (Assets Recovery Agency),” the court heard.
Gitonga further stated that the funds were obtained through disguised and concealed transactions, which were deliberately structured to obscure the nature, origin, location, and movement of the illicit proceeds.
“Investigations conducted by the agency have uncovered a sophisticated fraud and money laundering scheme involving Mose and Company, its directors, and associates, rendering the funds proceeds of crime liable for preservation and forfeiture,” Gitonga told the court.
