A son of a senior politician is being investigated in connection to a multi-million international organised fake gold scandal.

It is said the fraudsters work with various agencies, including State institutions.

 Some senior police officers are also on the spot for colluding with the fraudsters by assigning their juniors to guard some of the posh premises acquired by the fraudsters.

Directorate of Criminal Investigations (DCI) has already arrested two suspects and recovered a consignment of fake gold bars from a strong room belonging to Swissport transit freight station at the Jomo Kenyatta International Airport.

“The fake gold bars concealed in 31 boxes received from Uganda, had been stored at the airport by shadowy businessmen, dealing in the lucrative gold business on the pretext that it was cargo awaiting transit to different destinations across the world,” the DCI said.

According to DCI, the businessmen settled on Swissport freight since it provides ground and cargo handling services in major airports across the globe. “This was to avoid detection by detectives,” DCI said.

DCI boss George Kinoti yesterday cautioned businessmen within or outside the country intending to venture into gold business, to be on the lookout not to fall prey.

Kinoti said following sustained crackdown on gold fraudsters, they reinvented themselves, and creatively devised a seemingly smart way of luring investors to airports, to be shown the gold.

“Kindly confirm the authenticity of the gold deposits with relevant government agencies and more so the DCI,” Kinoti said.

Fraud involved about Sh350 million and a victim,  who was defrauded of Sh34 million was lured all the way from the United Arabs Emirates. 

The fraudsters immediately went underground after they received the payments.

They have been luring unsuspecting investors to view the gold at the customs offices at JKIA, the region’s preferred international aviation hub.

Prospective buyer

“Once at the airport, a prospective buyer is lured to Swissport’s strong room, where what appears to be genuine gold bars are displayed.

The client is advised that once the transaction is completed, the gold will be shipped to any destination of his choice across the globe,” DCI said.

However, immediately the buyer is convinced that the transaction is above board and makes payments including customs and shipping costs, the fraudsters go underground.

The gang lures unsuspecting genuine investors from across the world where in some cases they are taken to some banks to confirm the gold deposits. Convinced, the investors part with millions unaware that the gold is fake.

In March 2019, detectives stormed Barclays Bank of Kenya (now Absa) and recovered fake currency and fake gold deposits that had been shown to many investors, some of them who were later defrauded.

Fraudsters target mainly foreigners; some of them who are later threatened and fail to appear in court.

On April 27, the Director of Public Prosecutions Noordin Haji thwarted efforts to clandestinely withdraw a case in which Jared Otieno and his co-accused were charged with defrauding a foreigner, Samir Entorno.

The case was to be withdrawn after the prosecution said the complainant was not able to attend court, as he was out of the country.