Detectives from the Directorate of Criminal Investigations (DCI) have arrested three suspects in connection with a fake gold scam, where they allegedly defrauded two foreigners of over Sh340 million.
In a statement by DCI on Saturday, August 31, the scam began in June 2022 when Mr. Marco Colombo Conti, acting on behalf of Mr. Satbinder Singh, traveled to Kenya to purchase 100kg of gold from Mr. Allain Mwadia Nvita.
According to the DCI, Marco paid approximately USD400,000 in duties and other charges through Squire AfriLaw Consult Limited and was given 12kg of gold, which the seller claimed could be carried as hand luggage.
However, when Marco was about to leave, the seller informed him that the 12kg was part of a larger 112kg consignment and he was advised to store the gold in a safe box at Mysafe Vaults in Nairobi’s Village Market.
"Convinced that the gold deal was still viable, he left Kenya and returned on 5th February, 2024 in the company of Mr. Satbinder Singh who was interested in buying the gold in question. On arrival, Satbinder was introduced to Allain Mwadia Nvita who was the gold seller, Lehman John Raymond, Daniel Ogot of Patvad Trading Co. Ltd., and Frank Kateti, a Tanzanian agent," DCI stated.
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The group discussed the purchase of the full 112kg consignment and Mwadia promised to provide 31kg of gold, which would cover Marco’s initial payment and additional expenses.
On February 5, 2024, Ogot invoiced Satbinder’s company, Asianic Limited, for 162,240 euros and 548,830 euros, instructing payment into an escrow account at Stanbic Bank under Mosota Abunga & Associates Advocates, LLP.
Further invoices for freight charges were issued, and payments were made on February 8.
"On 7th February, 2024, the same agent again Invoiced Asianic Limited a further 14,112 Euros being freight charges for the 112kg gold consignment. All these payments were made on 8th February, 2024 after their private agent Frank Kateti advised that everything was okay and the 31kg of gold were deposited into Mysafe Vaults at Village market," DCI remarked.
On February 9, 2024, the foreigners collected 31kg of gold from Mysafe Vaults. However, Ogot and Kateti failed to deliver the consignment and necessary documents to the airport.
The foreigners were informed that a customs issue had led to confiscation and a fine of USD1,562,000.
Satbinder paid an additional 1,438,460 Euros in an attempt to retrieve the gold but continued to be misled by the scammers.
Suspicious of the ongoing discrepancies, Satbinder contacted the Commissioner General of KRA, who confirmed that all provided documents were forged.
Investigations revealed that Patvad Trading Limited was not licensed to trade in minerals and the airway bills were fake.
"It was established that; all the documents provided to the complainant were forged, the persons who were presented as customs officials were not KRA employees, Patvad Trading Limited was not licensed by the Ministry of Mining, Blue Economy and Maritime Affairs to trade in any minerals, the complainant had been defrauded a total of 2,168,258.91 Euros equivalent to Ksh 341,949,292," DCI stated.
The three suspects have been charged, and an investigation into the advocate's involvement is underway, with the case referred to the Office of the Director of Public Prosecutions (ODPP) for further action.
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