Authorities have apprehended several individuals, including a Kenyan lawyer and foreign nationals, in connection with a sophisticated fake gold scam that defrauded a Canadian investor of approximately Sh80.34 million (USD 618,000). The Directorate of Criminal Investigations (DCI) has intensified efforts to dismantle transnational gold fraud syndicates targeting foreign investors with promises of lucrative gold deals.
The scam involved a bogus agreement to supply 250 kilograms of gold, allegedly destined for shipment to Dubai aboard a private jet. The unsuspecting investor was issued a Proforma Invoice on April 15, 2025, amounting to USD 318,400 (Sh41.39 million), with the funds transferred directly to the law firm account of the arrested advocate.
In a second phase of the con, the victim was asked to send an additional USD 300,000 (Sh39 million) in cryptocurrency to a digital wallet. Despite these significant financial transfers, no gold was ever delivered, exposing the operation as an elaborate scam.
Investigators believe the arrested advocate played a central role in facilitating the fraud by acting as a trusted intermediary and providing legitimacy to the deal. The arrest follows the earlier detention of a Cameroonian national, suspected to be the mastermind of the syndicate. He was arraigned at the Milimani Chief Magistrate’s Court on July 31, 2025.
In a related case, a Congolese national was presented before the Milimani Law Courts for his involvement in a separate fraudulent gold transaction targeting a Gabonese investor. Detectives were granted a seven-day custodial order to finalize their investigations, with the case scheduled for mention on August 13, 2025.
Additionally, another suspect, believed to be the director of a company used to facilitate the scam, was arrested. The firm reportedly hosted negotiation meetings with the complainant before an escrow payment of USD 140,000 (Sh18.2 million) was made under false pretenses.
All suspects remain in custody as investigations proceed. Authorities have reaffirmed their determination to dismantle criminal syndicates engaged in fraudulent gold transactions. The crackdown highlights the ongoing threat posed by well-coordinated international scams that exploit legal and financial systems to defraud investors.
