American Citizen Arrested In Sh169 Million Fake Gold Scam

He pleaded not guilty and was granted a bond of Sh10 million plus one Kenyan surety.

The case will be mentioned on  January 23, 2025 for pretrial.

Establishments made after thorough investigations reveal that Sergio met the complainant sometime in July 2023 in Nevada, Las Vegas, USA introducing himself as a former banker and investor and legal consultant that specialised in conducting business in markets that are considered hostile and complex by the United States standards.

Awed by the profile, the complainant who happens to be a fellow compatriot contracted him (Sergio) to protect his gold transactions in Africa assuming that he was licensed and for this paid him USD50,000 signing bonus on August 29, 2023, followed by a USD15,000 payment on January 24, 2024 and a further USD15,000 on February 28, 2024.

In the broad scheme that has also seen a Congolese accomplice (Eric Kalala Mukendi) charged, the victim was made to fly to Nairobi where Sergio introduced him to another American accomplice, Caden Gebhard, whom he presented as an active duty US Soldier with the 19th Special Forces Group. Allegedly, Caden was critical in the business since he had contacts in the region.

It was following the meeting that the complainant was also introduced to the alleged owner of the gold and the licensed exporter at the Four Points by Sheraton Hotel in Hurligham, Nairobi.

Oblivious of his compatriots’ plot to fleece him, the complainant through his company AURUMSIC ONE LLC entered into a Sales and Purchase Agreement with the seller company – AERO Logistics – for the sale of 2820Kg of gold in which he ended up paying an amount of USD1,271,200 in the said transaction that was executed on diverse dates between 31st March, 2024 and 30th May, 2024.

In the end, no consignment was delivered prompting the matter to be reported to the police.

Meanwhile, more accomplices in the scam are being pursued.

Businesspersons are reminded to be wary of rings of organized fraudsters who sit in opulence, grabbing every slight opportunity to gain from the toil and sweat of genuine traders.

Director DCI Mohammed Amin implored on members of the public to remain alert when engaging in the so called gold bussiness as it has been established that fake gold merchants are once again trying to establish their foothold in the capital city.

Dozens of the fake gold dealers have been arrested in a series of police operations in the country. This is the latest such case involving Kenyans and foreigners who are conned over fake gold scams.

Cases where foreigners are being conned or money over fake gold on sale are on the rise.

Police have been asking foreigners seeking to purchase gold in the country to always seek the help of their respective embassies.

Police say they have arrested dozens involved in the cases and charged them in courts.