Canadians deceived out of Sh4.8 million through gold fraudulent schemes
Four Suspected Gold Scammers Arrested in Nairobi Raid
In a significant development, four individuals have been arrested in a meticulously planned raid at a residence in the Gigiri suburbs of Nairobi. The operation, carried out by detectives from the Directorate of Criminal Investigations (DCI) Operation Support Unit (OSU), took place along Whispers Avenue.
The suspects were allegedly involved in a sophisticated fake gold scam syndicate. During the raid, the police recovered incriminating items used in the scam, including a gold smelting machine, multiple rubber stamps bearing names of fake companies, plastic seals, a weighing machine, and documents with stamp impressions from the East African Community. These items were allegedly used to defraud victims.
The syndicate had recently defrauded two Canadian nationals of $37,500 (approximately Ksh 4.8 million) through one of their fake companies, Alaska Express Freight Group Ltd. The investigation is ongoing, with police pursuing additional leads and suspects linked to the operation.
In a related development, a Cameroonian national was also arrested for an Sh80 million suspected fake gold scam, indicating a wider network or connected criminal activities.
This operation exposed a complex setup involving fake documentation and equipment to convince victims of the legitimacy of the gold transactions. The demand for gold scams is rising as the demand for gold increases. The demand for gold is high due to its ability to help individuals trade without the US dollar in countries with economic sanctions.
Kenya, with its geopolitical position, is a safer travel destination than the DRC for gold traders. However, the country's weaker regulatory frameworks compared to the global banking system's reserve currencies make it a hub for the illicit gold trade from the DRC to East African countries and tax havens.
DCI boss Mohammed Amin stated that efforts have been made to dismantle fake gold syndicates, but scammers continue to operate in Kenya. The gold industry has been identified as a key area for money laundering and corruption. DCI mentions two parallel gold-related crimes happening in Kenya: the illicit gold trade and fake gold scams.
The DCI has accused lawyers of being part of the scheme to legitimize the process and help launder the illicit money. In June 2024, Amin met with FBI director Christopher Wray in Nairobi and claimed that DCI had dealt a big blow to the gold scammers, having identified, arrested, and prosecuted 64 people out of a total of 71 reported cases.
Gigiri Sub County Police Commander Robert Ndambiri declined to comment on the incident. The DCI continues to urge the public to be vigilant and report any suspicious activities related to gold transactions.
- Despite the efforts to combat fake gold scams in Kenya, the demand for gold, particularly as a means to trade without the US dollar in countries with economic sanctions, has led to an increase in such scams.
- In the realm of general-news, the DCI has accused lawyers of being part of the scheme to legitimize the process and help launder illicit money in the gold industry, identified as a key area for money laundering and corruption.
- The EPaper reported that the DCI arrested a Cameroonian national for an Sh80 million suspected fake gold scam, indicative of a wider network or connected criminal activities, and stressed the importance of the public reporting any suspicious activities related to gold transactions.
