Two Fraudsters Arrested in Sh720 Million Fake Gold Scam Targeting American Investor

NAIROBI — Detectives from the Directorate of Criminal Investigations (DCI) have arrested two suspects accused of orchestrating a multi-million-shilling fake gold scam that targeted an American businesswoman.

The two, identified as Michael Otieno Onyango and Andrew Clifford Otieno, are said to have conned their victim into believing she was investing in a legitimate USD 5.6 million (approximately Sh720 million) gold deal.

According to the DCI, the elaborate scheme involved luring the unsuspecting investor into purchasing 70 kilograms of gold supposedly stored in Nairobi.

The suspects allegedly presented themselves as seasoned dealers with access to high-level export channels and official documentation.

However, their plan began to unravel when the foreign investor, exercising caution, insisted that any gold transaction must be verified by the Ministry of Mining.

She requested that the purported gold consignment undergo official testing before any money changed hands.

Initially, the conmen appeared cooperative and agreed to her request.

But when the scheduled testing day arrived, they failed to show up, arousing suspicion. Detectives say the businesswoman decided to play along, setting up another meeting to help the DCI track the suspects.

At the arranged meeting point at Yaya Centre, one of the suspects picked her up under the guise of taking her for coffee. Instead, she was driven to House 27 at Rose Villa Estate, where the two scammers awaited to close the deal.

As negotiations continued, the woman refused to release the funds without proof of authenticity. Realising that their cover had been blown, the suspects allegedly panicked and fled the scene in a blue Mazda CX-Z (registration KDP 336R).

Their attempted escape was short-lived. A team of undercover DCI officers, who had been monitoring the meeting, intercepted the vehicle a short distance away and arrested the duo.

A subsequent search of the house at Rose Villa Estate unearthed two gold smelting machines and nineteen moulds, believed to be part of the fake operation.

Investigators say these tools were used to convince potential victims that the gold was genuine and ready for export.

The DCI confirmed that both suspects are in custody and undergoing interrogation at the DCI headquarters pending arraignment in court.

“The arrest underscores our continued crackdown on transnational organised crime and fake gold syndicates that have tarnished Kenya’s reputation in the global trade,” a senior detective said, urging foreigners to verify all mineral dealings through official government channels.

Kenya has in recent years been plagued by a surge in gold-related scams, with fraudsters posing as dealers, brokers, and government officials to swindle millions from investors.

The DCI has reiterated that legitimate gold trade in Kenya is strictly regulated, and any transaction should be authenticated by the Ministry of Mining and the Central Bank of Kenya before payments are made.