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Detectives from the Directorate of Criminal Investigations (DCI) Operations Support Unit have apprehended a suspect accused of defrauding a foreign national of USD 256,000 (approximately Ksh33 million) in a fake gold deal.
How the Fraud Unfolded
The suspect, identified as Steve Okoth Odek, also known as David Bett, allegedly entered into two separate gold purchase agreements with the victim earlier this year.
According to the DCI, the first deal, dated February 6, 2024, involved the purchase of 500kg of gold at a price of USD 40,000 per kilogram.
The second agreement, dated March 14, 2024, added 580kg under similar terms.
However, when the first deal failed, the suspect promised to deliver the gold after fulfilling additional conditions, including payment for jet chartering, taxes, and insurance.
Despite these reassurances, no gold was delivered. Instead, the suspect provided 20kg of fake gold bars as collateral to maintain the victim’s trust.
Payments and Discovery of the Scam
Unaware of the deception, the victim paid a total of USD 256,000 through two law firms:
- Owano & Associates Advocates: $126,000
- Alata & Co. Advocates: $139,200
The fraud came to light when the suspect attempted to extract an additional USD 188,080 from the victim.
Detectives uncovered the scheme before the second payment could be made.
Analysis of Fake Gold Bars
Upon investigation, detectives recovered the 20kg of fake gold bars that the suspect had provided as collateral.
A thorough analysis revealed the bars were made of copper, zinc, and tin, with no traces of actual gold.
Unlicensed Operations
The DCI also revealed that the suspect’s company, PCL Natural Resources Limited, was not licensed by the Ministry of Mining to trade in gold or any other precious metals.
This lack of authorization further solidified the fraudulent nature of the transactions.
Suspect in Custody
The suspect is currently in police custody as authorities complete the processing required for his arraignment.
The DCI emphasized its commitment to ensuring justice is served and warned against falling victim to similar scams.