Fake gold scammer arrested for defrauding foreigners of Sh33m

Detectives from the Directorate of Criminal Investigations (DCI) have arrested Steve Odek, alias David Bett, for defrauding a foreign national of Sh33 million in a fake gold deal involving over 500kg of counterfeit gold.

Odek, a suspected fraudster, was arrested by detectives from the Operations Support Unit.

According to the DCI, the victim entered into two separate agreements with Odek to buy gold, the first on February 6, 2024, for 500kg at Sh5 million per kilogram and the second on March 14, 2024, for another 580kg on similar terms.

"In addition, detectives have established that the second contract was signed after the first failed, with the fraudster promising to deliver the gold only after securing certain conditions, which included the buyer's responsibility for jet charter, payment of taxes and insurance," the DCI said.

Despite the conditions, Odek failed to deliver the promised gold. To keep the scam going, he provided 20kg of 'gold bars' as collateral, which were stored at MySafe Vault.

"The victim remained unaware of the scam and ended up paying a total of Sh33 million through two law firms; Owano and Associates Advocates and Alata and Co. Advocates," the DCI added.

After receiving the money, Odek attempted to defraud the victim of a further Sh24 million.

However, his fraudulent scheme was discovered, leading to a police report and subsequent investigations. "With this vital information, detectives were able to locate Odek, who was arrested earlier today and processed pending arraignment," the DCI concluded.

"Detectives recovered the 20kg of 'gold' that had been provided as collateral. A thorough analysis revealed that the bars were made of copper, zinc and tin, with no trace of gold, just a well-executed scam," the DCI confirmed.

Further investigation revealed that the company associated with Odek, PCL Natural Resources Limited, was not licensed by the Ministry of Mines to deal in gold or other precious metals.

"With this vital information, detectives were able to locate Odek, who was arrested earlier today and processed pending arraignment," the DCI concluded.