Detectives from the Directorate of Criminal Investigations (DCI) Operations Support Unit have arrested a man suspected of defrauding a foreigner USD256,000 (approximately Ksh33 million) in a fake gold deal.
On Saturday, December 7, the DCI revealed in a statement that the suspect, Steve Okoth Odek, also known as David Bett, had entered into two separate agreements with the victim for the purchase of gold.
“Investigations have revealed that the victim entered into two separate gold purchase agreements with the scammer where on February 6th, 2024 he was to purchase 500kg of gold and on March 14th, 2024 another 580kg with each kilogram priced at USD 40,000.
“Additionally, the detectives have established that the second contract was signed after the first deal failed where the scammer promised to deliver the gold only after securing certain conditions, including the buyer’s responsibility for jet chartering, payment of taxes and insurance,” DCI remarked.
The DCI explained that despite the suspect’s agreed terms, he failed to deliver the gold. In an attempt to prolong the scam, he offered 20kg of fake gold bars as collateral.
“At this point, the victim remained unaware that he was being scammed, and ended up paying a total of USD 256,000 through two law firms; Owano & Associates Advocates ($126,000) and Alata & Co. Advocates ($139,200),” DCI stated.
The Directorate further revealed that after receiving the initial amount, the suspect attempted to defraud the foreign national of an additional USD 188,080. However, the attempt failed after detectives uncovered the scam.
“Swinging into action, the detectives have burned the midnight oil to uncover the truth, recovering the 20kg of “gold” that had been provided as collateral. A thorough analysis revealed that the bars were composed of copper, zinc, and tin, with no trace of gold but just a well-executed scam,” DCI stated.
According to the DCI, the suspect’s company, PCL Natural Resources Limited, was not licensed by the Ministry of Mining to trade in gold or any other precious metals.
The suspect is in police custody for processing as he awaits arraignment.
