Three individuals are behind bars in Nairobi after orchestrating a sophisticated fake gold scam that defrauded two foreign nationals of over Kes. 340 million.
The scam, which spanned nearly two years, took root in June 2022, when Mr. Marco Colombo Conti, a business associate of Mr. Satbinder Singh, arrived in Kenya to purchase 100kg of gold. Marco had been introduced to Mr. Allain Mwadia Nvita, who presented himself as a legitimate gold seller.
The initial phase of the transaction seemed legitimate, as Marco paid approximately 400,000 US dollars(approx.Kes.51,672,600) through Squire AfriLaw Consult Limited, a law firm, to cover duty and other associated charges. In return, he received 12kg of gold, which he was told he could carry out as hand luggage to offset the costs he had already incurred.
The Beginning of the Gold Scam: A Promising Deal Turns Sour
However, just as Marco was preparing to leave Kenya with the gold, Mwadia informed him that he could not take the 12kg with him, as it was part of a larger 112kg consignment that Marco was purchasing. Mwadia suggested that Marco store the gold securely at Mysafe Vaults, located at the Village Market in Gigiri, Nairobi, a proposal that Marco accepted.
Convinced that the deal was still solid, Marco returned to Kenya on February 5, 2024, this time accompanied by his business associate, Mr. Satbinder Singh, who was also interested in purchasing the gold. Upon arrival, Satbinder was introduced to Mwadia, as well as two other key figures in the scam: Lehman John Raymond and Daniel Ogot of Patvad Trading Co. Ltd. A Tanzanian agent, Frank Kateti, was also involved in facilitating the transaction.
The group discussed the possibility of Satbinder buying the 112kg consignment, with Mwadia agreeing to provide 31kg of gold to cover the funds Marco had paid in 2022, as well as any additional expenses Satbinder might incur while shipping out the full consignment.
On the same day, Daniel Ogot invoiced Satbinder’s company, Asianic Limited, for 162,240 Euros (Kes.23,187,340) and 548,830 Euros(Kes.78,438,783), directing that these amounts be paid into an escrow account at Stanbic Bank under the name Mosota Abunga & Associates Advocates, LLP.
Further charges were invoiced on February 7, 2024, for freight costs, totaling 14,112 Euros(Kes.2,016,887). By February 8, 2024, Satbinder had made all the necessary payments, encouraged by assurances from Kateti that everything was in order. The 31kg of gold was deposited into Mysafe Vaults at the Village Market.
The Elaborate Fraud: How the Scam Unfolded
The following day, the foreign investors collected the 31kg of gold from the vault and proceeded to the clearing agent’s office, where the gold was divided into two parts, packed into blue metallic boxes, and sealed. They were assured that the consignment and the necessary documentation would be delivered to them at the airport, but Ogot and Kateti failed to show up, leaving the investors stranded.
Left with no other option, Marco and Satbinder flew out of Kenya with the belief that their gold was still secure. While in Italy, Ogot contacted them, claiming that a mistake in declaring the consignment’s weight had resulted in its confiscation by the Customs Department.
To add to the investors’ woes, Ogot informed them that a fine equivalent to 20% of the consignment’s value, totaling 1,562,000 US dollars(Kes.201,781,503), had been imposed, threatening the loss of the entire consignment if the fine was not paid.
Alarmed but still hopeful of salvaging the deal, Satbinder flew back to Kenya and paid 1,438,460 Euros(Kes.205,584,703) through the same escrow account, believing it would help resolve the customs issue. He was even introduced to a woman named Susan Oketch, who was purported to be a customs official. She not only confirmed the authenticity of the fine but also provided what seemed to be legitimate ownership documents.
The Investigation and Arrest: How Authorities Brought the Scammers to Justice
However, after returning to the UK on March 20, 2024, Satbinder became increasingly suspicious as the scammers continued to string him along with fake airway bills and empty promises of delivery. Realizing the deal was unraveling, he wrote to the Commissioner General of the Kenya Revenue Authority (KRA) to verify the authenticity of the documents.
The matter was promptly referred to the Directorate of Criminal Investigations (DCI), which launched an in-depth investigation. The findings were damning: all the documents provided to the complainants were forged, the supposed customs officials were impostors, Patvad Trading Co. Ltd was not licensed to trade in minerals, and the airway bills were fabricated. In total, the complainants had been swindled out of 2,168,258.91 Euros, equivalent to KES. 341,949,292.
The three suspects involved in the scam have since been arraigned in court. The investigation into the conduct of the advocate managing the escrow account has been forwarded to the Office of the Director of Public Prosecutions (ODPP) for further review and action.
