Three Arrested for Defrauding Foreign Nationals of Ksh 340 Million in Fake Gold Scam

Three individuals are currently in custody at a Nairobi detention facility after being apprehended by detectives for defrauding two foreign nationals of Ksh 340 million in a fake gold scam that started in June 2022.

The scam unfolded when Marco Colombo Conti, a business associate of Satbinder Singh, traveled to Kenya intending to purchase 100 kilograms of gold from a man identified as Allain Mwadia Nvita. Marco made an initial payment of USD 400,000 through a law firm, Squire AfriLaw Consult Limited, for duty and other charges. In return, he received 12 kilograms of gold, which the seller claimed could be taken as hand luggage to recover the funds. However, when Marco was about to leave Kenya, he was informed that the 12 kilograms could not be taken as it was part of a larger 112-kilogram consignment. He was advised to store the gold at Mysafe Vaults in Village Market, Nairobi. Trusting the deal was still legitimate, Marco agreed and left Kenya.

On February 5, 2024, Marco returned to Kenya, this time accompanied by Satbinder Singh, who was also interested in purchasing gold. Upon their arrival, they were introduced to Allain Mwadia, the seller, and his associates: Lehman John Raymond, Daniel Ogot of Patvad Trading Co. Ltd, and Tanzanian agent Frank Kateti. The group agreed to provide 31 kilograms of gold to cover Marco’s initial payment and offset further expenses incurred by Satbinder.

On the same day, Daniel Ogot invoiced Satbinder’s company, Asianic Limited, for 162,240 Euros and 548,830 Euros, with payments directed to an escrow account at Stanbic Bank held under Mosota Abunga & Associates Advocates, LLP. Another invoice for 14,112 Euros for freight charges was issued on February 7, 2024, with the payments made the following day. On February 9, 2024, the foreign nationals retrieved the 31 kilograms of gold from Mysafe Vaults and proceeded to the clearing agent’s office, where the gold was packed into two blue metallic boxes. The consignment was sealed, signed, and stamped in preparation for their flight. However, as they departed for the airport, both the clearing agent, Daniel Ogot, and the agent, Frank Kateti, failed to deliver the promised documents and consignment to the airport. The foreigners were forced to fly out empty-handed.

While in Italy, they were informed by Ogot that an error in the consignment’s declared weight had led to its confiscation by Kenyan Customs and that their license had been suspended. Ogot demanded a fine of USD 1,562,000, equivalent to 20% of the consignment’s value, to release the gold. Desperate to recover the consignment, Satbinder flew back to Kenya and paid 1,438,460 Euros into the same escrow account, still unaware that he was being defrauded. Satbinder was then introduced to a woman named Susan Oketch, who falsely claimed to be a customs officer at JKIA and confirmed the fine’s authenticity. She also provided fake ownership documents. Satbinder returned to the UK on March 20, 2024, but the scammers continued to mislead him, even sending him fake airway bills for a supposed delivery to Ireland.

Growing suspicious, Satbinder wrote to the Commissioner General of the Kenya Revenue Authority (KRA) to verify the legitimacy of the documents. Following an investigation by the Directorate of Criminal Investigations (DCI), it was revealed that all the documents provided to the complainants were forged. None of the individuals posing as customs officials were KRA employees, and Patvad Trading Limited was not licensed to trade in minerals by the Ministry of Mining, Blue Economy, and Maritime Affairs. The airline also confirmed that the airway bills were fake.

In total, the complainants were defrauded of 2,168,258.91 Euros, equivalent to Ksh 341,949,292. The three suspects have been arraigned in court, while the file on the advocate’s conduct for breach of escrow account management has been forwarded to the Office of the Director of Public Prosecutions (ODPP) for further review and action.