A Kenyan based in the U.S. was last week sentenced in a U.S. District Court for committing fraud.
According to a statement from the Office of Public Affairs of the United States Department of Justice, 59-year-old Paul Maucha used his company to defraud American citizens.
The statement detailed that Maucha’s company, American Eagle Services Group Inc. (AESG), falsely promised loans to multiple victims.
However, individuals seeking loans were required to pay an upfront fee before receiving the promised funds.
Court documents and trial evidence indicated that Paul Maucha and a co-conspirator orchestrated a scheme through the shell company that Maucha controlled. The accused deceived clients about the company’s assets and misrepresented how funds for loans were sourced.
“Maucha, through AESG, assured loan-seeking victims that AESG would facilitate these loans. The victims were required to first provide AESG with an advanced fee, but the company misrepresented the purpose of that fee,” the statement explained.
To reassure clients, Maucha promised refunds of advance fees if loans were not processed. However, all funds received were reportedly spent by Maucha and his partner until the company went bankrupt.
“As proven in court, Maucha and his co-conspirator knew AESG lacked the capital to fulfill these loan agreements when they were made. Refunds were impossible as Maucha and his partner used fees for personal gain, leaving no funds for refunds,” the Office of Public Affairs of the United States Department of Justice added.
A federal jury found Maucha guilty of one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of engaging in monetary transactions involving criminally derived property.
The Court sentenced him to 11 years in prison.
In addition to the 135-month prison term, U.S. District Court Judge Carl J. Nichols ordered Maucha to serve three years of supervised release.
Maucha is also required to pay a $200,000 fine, a $400 special assessment, and make restitution and forfeiture payments totaling $1,901,252.
The total fine amounts to $2.1 million (Approx Kes.272 million).
