Nine individuals accused of orchestrating a USD 439 trillion fraud scheme involving foreign businessmen from the Netherlands have been acquitted due to lack of evidence. Milimani Senior Principal Magistrate Wandia Nyamu ruled that the prosecution failed to substantiate the allegations against the suspects: Isaiah Aluodo Belek, Moses Otieno, Peter Aura, Brian Waweru, John Kalombo, Peter Kisanya, Noah Ouma, Charity Njeri, and Mercy Cheptoo.
Details of the Alleged Fraud Scheme
The accused were charged with conspiring to defraud Dubai businessman Omid Kharkhane of USD 36,000 between October 23 and November 15, 2023, at a warehouse in Embakasi, Nairobi. They allegedly posed as customs officials and claimed to facilitate the transport of a consignment worth billions of dollars from Nairobi to Dubai.
Police investigations revealed that the complainant, Kharkhane, had entered into a cash-on-transit agreement with the Central Bank of Togo involving Ksh439 trillion. The suspects convinced the complainant that USD 4 billion was part of the first shipment held at the Kenya Customs Warehouse, pending payment of Ksh5.5 million in duty fees. The accused were arrested during a police raid at the warehouse, where fake US dollars, stolen jungle fatigues, military boots, and customs reflector jackets were recovered.
Fake Currency and Gold Scams in Kenya
Detectives noted similarities between this case and other fake currency and gold scams plaguing the country. Fraudulent schemes involving fake gold and counterfeit money continue to harm Kenya’s reputation and economy. In a related incident four years ago, police seized over Ksh2 billion in fake currency at a former Barclays Bank branch, and several international fraudsters were arrested. Authorities also report that gold cartels operating in Nairobi are using threats and travel stop orders to intimidate foreign complainants.
Efforts to dismantle such cartels require strong political will and robust law enforcement. However, many victims, particularly foreigners on tourist visas, fall prey to these scams. The Directorate of Criminal Investigations (DCI) warns that such scams are reaching unprecedented levels, with far-reaching consequences for Kenya’s financial system. The agency calls for increased vigilance and support to eradicate these schemes and protect the country’s integrity. Kenya remains under scrutiny as a potential hub for money laundering and fraudulent activities, highlighting the urgent need for systemic reforms.
