Three arrested in connection with Sh52m gold scam

Detectives from the Directorate of Criminal Investigations (DCI) in Nairobi arrested three(3) individuals suspected of running a fake gold scam.

Martha Mwikali Katumo, James Mwenda, and Calvin Onyango Magak were arrested at White Pearl Apartments in Westlands after allegedly defrauding two(2) unsuspecting businessmen of Sh51.6 million (about US$400,000).

During the raid, DCI detectives discovered 10.2 kilogrammes of counterfeit gold pellets and a weighing machine.

“Preliminary investigations have revealed that the businessmen were introduced to the fraudsters by a Namibian national, where they met over a cup of coffee, which led them into a business deal that has so far cost them an arm and a leg,” the DCI said in a statement on X.

The deal also involves another person who is said to be a mining and geology expert and who is said to have tested the first consignment of 5kg of gold and given it a clean bill of health.

The scammers extended their scam by involving Euromax Global Shipping and Logistics, a company owned by a man called Maxwel, who allegedly facilitated the shipment to Dubai. One of the victims travelled to Dubai with Martha, expecting a smooth transaction that never materialised.

“When they arrived in Dubai and after paying all the bills, which included air tickets, it dawned on one of the victims that they had been scammed and everything they had paid had gone down the drain,” the DCI said.

The intelligence agency also urged the public to be cautious when investing in gold as fraudulent dealers are getting bolder in their attempts to gain a foothold in Nairobi.