A businessman lost Ksh48.8 million in a fraudulent investment scheme after being lured into purchasing non-existent shares in a lodge business.
In a statement on Saturday, July 12, the Directorate of Criminal Investigations (DCI) said the suspect, Mara Ndovu Lodge Limited Director George Maina Muriithi was arraigned before the Milimani Law Courts on charges of obtaining money by false pretenses.
According to the DCI, the suspect approached the complainant in October 2022 with what he portrayed as a promising business opportunity.
"He claimed to be selling 48,800 shares in Mara Ndovu Lodge Limited, each priced at Ksh1,000, amounting to a total of Ksh48.8 million,” the DCI said.
The victim agreed to buy the shares and a formal share purchase agreement was drawn up on December 22, 2022, by Otieno & Ambrose Advocates, who were acting on behalf of Muriithi.
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According to the investigating agency, thee deal outlined the sale of 48,800 ordinary shares at the agreed amount.
However, despite receiving the full payment, Muriithi allegedly became evasive and failed to transfer the shares as stipulated in the agreement.
"The complainant deposited the agreed amount in two installments through Otieno & Ambrose Advocates, the suspect's lawyer. However, despite the complainant fulfilling his end of the deal, Muriithi failed to transfer the shares as per the agreement," the DCI added.
The complainant, left in limbo, reported the matter to Parklands Police Station, prompting a detailed investigation by detectives.
During court proceedings, Muriithi pleaded not guilty; prosecutors opposed his release on bond, arguing that he may flee to avoid prosecution.
The court agreed with the prosecution's position and ordered that Muriithi be held at the Capitol Hill Police Station until a ruling on his bond application, scheduled for July 15, 2025.
