Nairobi: Three arrested in Ksh.51.6M fake gold scam

Three individuals suspected of running a fake gold scam have been arrested by detectives from the Directorate of Criminal Investigations (DCI) in Nairobi.

Martha Mwikali Katumo, James Mwenda, and Calvin Onyango Magak were apprehended at White Pearl apartments in Westlands, after allegedly defrauding two unsuspecting businessmen of Ksh.51.6 million (approx. USD 400,000).  

Detectives uncovered 10.2 kilograms of fake gold pellets along with a weighing machine during the raid.

"Preliminary Investigations have revealed that the businessmen were introduced to the conmen by a Namimbian national where they met over a cup of coffee that would later usher them into a business deal that has cost them an arm and a leg as of now," said the DCI in a statement on X.

"The deal also implicates another individual who is alleged to have been a mines and geology expert and is said to have tested the first consignment of 5Kgs of gold and given it a clean bill of health."

The scammers further expanded their deception by involving Euromax Global Shipping and Logistics, a company owned by a man named Maxwel, who supposedly facilitated the shipment process to Dubai.

One of the victims travelled to Dubai alongside Martha, anticipating a smooth transaction that never materialised.

"When they arrived in Dubai and after footing all the bills that included air tickets, it dawned on one of the victims that they had been scammed and all she had paid had gone down the drain," said the DCI.

The intelligence agency further implored members of the public to be cautious when investing in gold, as fraudulent dealers are becoming increasingly bold in their attempts to establish a foothold in Nairobi.