Lawyer in Sh65 Million Fake Gold Scandal Dragged to Court as Investigators Uncover Web of Suspicious Deals

A prominent Nairobi lawyer has found himself at the centre of a multi-million-shilling fake gold scandal after investigators linked him to an alleged scheme that saw a Dubai-based businessman lose more than Sh65 million in what authorities describe as a fictitious precious metals deal.

The case, which has reignited concerns over Kenya’s long-running fake gold syndicates, pits lawyer Conrad Anangwe Maloba and his law firm against the state, with prosecutors insisting that criminal charges should proceed despite attempts to halt the case through the courts.

Director of Public Prosecutions Renson Igonga has urged the High Court in Kiambu to throw out an application filed by Maloba and Conrad Law Advocates LLP seeking protection from arrest and prosecution.

The lawyer is accused of playing a role in a transaction that investigators say was carefully orchestrated to convince foreign investors that they were purchasing a lucrative gold consignment from Kenya.

Court documents reveal that the complaint was lodged by Andrew Adel Gaballa, a director of Sakina Commodities FZCO, who claims he was duped out of more than USD 505,000, equivalent to about Sh65 million, after being drawn into a purported gold export deal.

According to investigators, Gaballa entered into agreements witnessed by Maloba before wiring hundreds of thousands of dollars into accounts operated by the law firm. The transfers reportedly included USD 10,000 in legal fees and USD 495,000 allegedly held in trust pending completion of the transaction.

The complainant later travelled to Kenya expecting to finalize the purchase and was allegedly shown what appeared to be a genuine gold consignment. Investigators say he was even provided with three boxes said to contain 10 kilograms of gold as security under a collateral management arrangement.

But what initially appeared to be a high-value commodity transaction quickly began to unravel.

Detectives told the court that Gaballa became alarmed after inconsistencies emerged regarding insurance arrangements linked to the shipment. Documents allegedly indicated cryptocurrency payments worth hundreds of thousands of dollars had been made despite vastly different insurance quotations.

Further suspicion arose when he was reportedly issued with what investigators believe was merely a receipt rather than a valid insurance policy.

Authorities say requests for proof that insurance payments had actually been remitted went unanswered.

The biggest red flag emerged when Gaballa was informed that the gold had been flown to Oman aboard a private jet in March.

Investigators subsequently checked aviation records and allegedly found no evidence that such an aircraft departed Nairobi on the stated date. Detectives also say no shipping documentation was produced to support claims that the gold had ever left the country.

By then, investigators say, the businessman had concluded that he had been caught in a sophisticated fraud scheme and reported the matter to the Directorate of Criminal Investigations.

The case adds to a growing list of high-profile gold scams that have repeatedly tarnished Kenya’s reputation as a regional trading hub.

Over the past decade, foreign investors from the Middle East, Asia and Europe have lost millions of dollars in elaborate fake gold transactions involving forged export permits, counterfeit refinery documents, fake security companies and non-existent consignments.

Several investigations have previously exposed criminal networks that use luxury hotels, rented offices, lawyers, brokers and individuals posing as government officials to create the appearance of legitimacy before victims are persuaded to release large sums of money.

In the latest case, detectives arrested Duncan Okonji Okaka, whom they describe as an intermediary linking the complainant to the alleged deal. He has already been charged and released on bail pending trial.

Maloba’s legal troubles do not end there.

Court records indicate that prosecutors are also pursuing a separate conspiracy to defraud case in which he is accused of participating in a scheme involving a purported Kenyan government contract for the supply of 500 Toyota Hiace ambulances.

In that matter, authorities allege that a foreign investor was induced to part with USD 470,750 after being promised access to the lucrative tender. Maloba has denied the accusations.

The lawyer maintains that he acted strictly within the confines of his professional duties and insists that the money received by his firm was held in escrow on behalf of a client. He argues that he neither negotiated nor executed the underlying commercial transaction and merely processed payments based on written instructions.

He has also told the court that no complaint has been lodged against him before the Advocates Complaints Commission or the Advocates Disciplinary Tribunal, arguing that the dispute is fundamentally commercial rather than criminal.

However, investigators have dismissed claims that he is being targeted unfairly.

In court filings, detectives insisted that the probe was conducted professionally and that there is sufficient evidence to warrant prosecution. They argue that granting the orders sought by the lawyer would effectively shield him from lawful criminal proceedings and frustrate efforts to establish the truth behind the missing millions.

The High Court’s decision is now expected to determine whether Maloba will face trial in a case that has once again cast a spotlight on Kenya’s notorious fake gold underworld, where promises of vast fortunes have repeatedly ended in allegations of deception, vanished money and bitter international disputes.