A Nairobi-based lawyer, Michael Otieno Owano, has been arrested over allegations of defrauding a Canadian investor of more than $600,000 (Sh79.9 million) in a gold scam involving 250 kilogrammes of gold that was never delivered.
According to the Directorate of Criminal Investigations (DCI), the investor first wired $318,400 (Sh42.4 million) into Owano’s law firm account, Otieno M.O. Law Advocates, after being issued with a pro forma invoice from EAI Logistics. Authorities say the lawyer then played a central role in a wider syndicate that lured foreign investors with false promises of gold shipments.
The victim was later persuaded to transfer another $300,000 (Sh39.9 million) into a syndicate-controlled Tether cryptocurrency account, often used for cross-border online transactions. Despite the payments, no gold consignment was ever shipped.
Victims allege that Owano personally assured them of delivery, raising alarm within the legal fraternity over a licensed advocate’s alleged role in an international fraud.
“We have stepped up our efforts to combat transnational gold fraud syndicates that use sophisticated fake gold schemes to defraud foreign investors out of hundreds of thousands of dollars,” said the DCI in a statement.
Investigators further revealed that Francis Talla Ouafo, a Cameroonian national believed to be the mastermind of the operation, had earlier been arrested. Kelvin Otieno Onyango, also known as Kevo Sonko and a director of SwiftTaxis Logistics Ltd, was also detained after it emerged that a $140,000 (Sh18.6 million) transfer was made into an escrow account at his office.
The gold scam hearings are ongoing at the Milimani Law Courts, where suspects remain in custody as detectives intensify investigations.
If proven, the case will rank among the biggest international gold fraud scandals linked to Nairobi in recent years.