Police Arrest Second Suspect in Sh38 Million Gold Fraud Targeting Foreign Investor

Tim Orao Shikalo nabbed in elaborate scam that duped international businessman

NAIROBI – DCI detectives have arrested a second suspect in connection with a sophisticated gold fraud scheme that swindled a foreign investor out of Sh38 million using fake precious metals and fraudulent contracts.

Tim Orao Shikalo was apprehended by detectives from the Operations Support Unit (OSU) as part of an ongoing investigation into what authorities describe as an elaborate criminal syndicate targeting international investors with promises of lucrative gold deals.

His arrest follows the December 7 capture of Steve Okoth Odek, who operated under the alias David Bett and is believed to be the mastermind behind the scam. Odek has already been charged in connection with the fraudulent scheme.

According to police investigations, the criminal operation involved fake gold purchase contracts totaling over 1,080 kilograms of purported precious metals.

The suspects allegedly promised their victim secure delivery, guaranteed collateral, and legitimate legal facilitation.

The fraud played out through two separate purchase agreements in early 2024.

The first deal, signed on February 6, involved the purported sale of 500 kilograms of gold, while a second contract dated March 14 covered an additional 580 kilograms.

Each kilogram was priced at Sh5.7 million.

When the initial deal failed to materialize, the scammers provided 20 kilograms of “gold bars” as collateral, which were stored at MySafe Vault.

The victim, still unaware of the deception, made payments totaling Sh38 million through two law firms: Owano & Associates Advocates (Sh18 million) and Alata & Co. Advocates (Sh20 million).

The suspects then attempted to extract an additional Sh27 million from their target, but by this point their fraudulent activities had been uncovered and reported to authorities.

Laboratory analysis of the collateral “gold” revealed the bars contained no precious metals whatsoever.

Instead, they were composed entirely of copper, zinc, and tin – a sophisticated forgery designed to deceive potential buyers.

Further investigation revealed that the seller’s company, PCL Natural Resources Limited, lacked proper licensing from the Ministry of Mining to deal in gold or other precious metals.

Shikalo remains in police custody pending arraignment, while detectives report they are closing in on two additional suspects believed to be part of the criminal network.

The case highlights the growing menace of gold fraud schemes targeting foreign investors in Kenya, where the precious metals trade has become increasingly attractive to international buyers seeking to diversify their investment portfolios.

Authorities are urging potential investors to verify the credentials of gold dealers and ensure all transactions comply with proper licensing requirements before engaging in precious metals purchases.

The investigation remains active as police work to dismantle what they describe as a sophisticated criminal enterprise designed to exploit the international gold market.

Police sources indicate that more arrests are expected as investigators work to bring all members of the syndicate to justice.