How Criminal Ring Make Millions From Logbook Forgeries

Adding that this is what happened to the owner of the lorry after a man identified as Frederick Kilonzo approached him, expressed interest in the truck and wrote him two bouncing cheques worth Sh1.3Million and by the time the owner realized that the cheques could not be honoured, Kilonzo had tampered with the lorry’s tracking system and courted new buyers.

” In an intricate web of fraudsters, the initial ownership details of the lorry in respect of Gideon Kiarie and Cooperative bank were also erased from the NTSA portal and replaced with others. The new owners were Frederick Kilonzo and MyCredit limited, a finance company that provides asset financing in 24 hours. The new documentation instantly earned Kilonzo a loan of Sh2.8 million from MyCredit limited. In a puzzle that detectives based at the NTSA burnt the midnight oil to unravel, Sh1.5M was immediately disbursed to Kilonzo, even before the vehicle’s insurance details were ascertained,” said the DCI

The detectives are still investigating who were the beneficiaries of the remaining Sh1.3 million.

” But what is more shocking, the lorry was auctioned by MyCredit limited at Sh4.5 million within 10 days! In a well choreographed scheme with the assistance of a top manager identified as Patrick Kimeu Mutisya, the truck that had been insured by cooperative bank against a value of Sh6.5 million was sold for a song to one John Muigai,” added the DCI

Police say when Muigai was questioned by detectives he said that he did not participate in any public auction but was only called and informed that there was a lorry being auctioned by Mycredit at a mouthwatering price.

And it is while Muigai was regularizing the vehicle’s ownership, that he shockingly learnt that the lorry did not belong to Frederick Kilonzo and MyCredit limited as he had been made to believe.

“When detectives launched investigations into this high level scam, they contacted cooperative bank that had insured the lorry only for the bank to disclose that they were still the owners of truck and had not transferred its ownership to anyone. A search at the NTSA portal revealed that the original details of the vehicle’s ownership had been amended and replaced with Frederick Kilonzo and MyCredit limited,” noted the police.

DCI detectives have since established that crooked officials at the NTSA who claim that the system was hacked into, working with brokers and unscrupulous traders, had developed new documentation for the lorry and used the fake papers to acquire the loan.

The four suspects will answer to charges of, obtaining credit by false pretences contrary to section 316(a) of the penal code, forgery contrary to section 345 as read with section 349 of the penal code, uttering a false document contrary to section 353 of penal code, issuing of bad cheques contrary to section 316A(1)(a)(4) of the penal code and fraudulent disposition of mortgaged goods contrary to section 291 as read with section 36 of the Penal Code.