Nairobi, Kenya — The Directorate of Criminal Investigations (DCI) has announced a major breakthrough after dismantling a well-coordinated syndicate behind a USD 5.6 million gold scam that targeted an American businesswoman.
In a detailed statement, the DCI confirmed the arrest of Michael Otieno Onyango and Andrew Clifford Otieno, identified as the masterminds of the transnational fraud scheme.
How the Gold Scam Unfolded
According to detectives, the two suspects lured the unsuspecting foreign investor with an offer to purchase 70 kilograms of gold, claiming it was sourced legitimately in Kenya. The businesswoman, however, demanded that the gold be verified by the Ministry of Mining before any payment could be made.
The scammers initially appeared compliant, agreeing to a verification process. However, their deception began to unravel when they failed to appear for a scheduled gold testing appointment.
Realizing something was amiss, the investor cooperated with law enforcement and arranged a second meeting — a move that would eventually expose the elaborate operation.
Arrest at Rose Villa Estate
DCI investigations revealed that during the second meeting, the businesswoman was picked up from Yaya Centre by a supposed associate who claimed they were heading for a casual coffee meeting. Instead, she was driven to House No. 27 at Rose Villa Estate, where the suspects awaited her arrival.
The conmen attempted to convince her to finalize the deal, but she remained cautious. When they sensed suspicion, the suspects panicked and fled the scene in a blue Mazda CX-5, registration number KDP 336R.
Detectives, who were closely monitoring the suspects, intercepted the vehicle shortly after and arrested both men.
What Police Recovered
Following the arrest, the suspects were escorted back to the Rose Villa residence. A thorough search by detectives uncovered two smelting machines and 19 smelting moulds, key evidence linking the duo to a sophisticated fake gold production network.
According to the DCI, the seizure demonstrates the advanced level of planning and deception used to defraud unsuspecting investors.
DCI’s Warning to Investors
The DCI has since issued a warning to both local and international investors, urging them to conduct due diligence before engaging in gold and mineral transactions in Kenya.
The agency reaffirmed that all genuine gold dealings must be verified through the Ministry of Mining and the Central Bank of Kenya, emphasizing that private, unregulated deals often lead to scams.
DCI detectives are now pursuing other suspected members of the syndicate believed to be part of a larger cross-border fraud network.