Suspect Arrested Over 9 Fake Accident Compensation Claims

Detectives from the Insurance Fraud Investigations Unit (IFIU) have arrested a suspect in connection with orchestrating nine fraudulent compensation claims arising from a road accident along Kangundo Road.

In a statement on Friday, September 4, the Directorate of Criminal Investigations (DCI) said the suspect was nabbed by Insurance Fraud Investigations Unit (IFIU) detectives in Kasarani. 

According to the DCI, the suspect, Edwin Odhuambo Oduor, organized different individuals to submit compensation claims, falsely claiming they had sustained injuries in the accident which involved an insured motor vehicle and a third-party vehicle. 

“The suspect, Edwin Odhuambo Oduor, is reported to have orchestrated the submission of claims by different individuals purporting to have sustained injuries in the accident involving an insured motor vehicle, registration number KCT 2*9J, and a third-party vehicle, registration number KBK 9*6C,” DCI stated. 

The IFIU detectives launched investigations after Jubilee Insurance raised concerns over the authenticity of the claims.

Investigations subsequently established that documents used in support of the compensation claims had been obtained fraudulently from Mama Lucy Hospital and Kayole Police Station.

Following the conclusion of investigations, the inquiry file was forwarded to the Office of the Director of Public Prosecutions (ODPP), which recommended that Oduor be charged with conspiracy and insurance fraud.

“Upon conclusion of investigations, the inquiry file was forwarded to the Office of the Director of Public Prosecutions (ODPP), which recommended that the suspect be charged with conspiracy and insurance fraud,” DCI said. 

The suspect is in custody and is being processed for arraignment at the Milimani Law Courts.

Further, the DCI warned that insurance fraud is a serious criminal offence and said individuals who attempt to exploit compensation systems will be arrested and charged. 

“Insurance fraud is a serious criminal offence, and those who seek to exploit legitimate compensation systems through deception should be warned that their schemes can be detected, investigated and prosecuted,” DCI added. 

This comes a day after Gladdens Homes Limited Director Bildad Nzuki Wambua was arraigned in court over allegations of defrauding 22 victims of a total of Ksh28 million. 

In a statement, DCI said Wambua was charged with obtaining money by false pretences and money laundering.

Wambua allegedly operated the scheme between 2024 and 2026 and targeted unsuspecting members of the public. 

The suspect promised the victims that they would acquire houses of different designs and sizes. 

The properties were allegedly marketed as being part of the Urban Housing Renewable Development LPP project on Land Title No. Nairobi/Block A 40/474.

“The accused is alleged to have operated a systematic scheme between 2024 and 2026, targeting unsuspecting members of the public by representing to them that they would purchase houses of varying designs and sizes on Land Title No. Nairobi/Block A 40/474, purportedly under the Urban Housing Renewable Development LPP project,” DCI said. 

The investigative agency noted that the victims made the payments through Gladdens Homes Agency, a privately registered entity associated with Wambua, after being induced by representations concerning the purported housing project.