The hearing of a case in which a city lawyer and a gold dealer are charged with defrauding an American businessman $1 million (about Ksh132 million) in a fake gold deal has been pushed to August 31, 2023.
The gold fraud case against lawyer Thomas Otieno Ngoe and businessman Nicholas Otieno Ndolo had been scheduled for the first hearing before Senior Principal Magistrate Zainab Abdul on Thursday, June 29, but could not proceed since the trial magistrate was not sitting.
Lawyer Ngoe and Ndolo who were first arraigned in court on April 4, 2023, have since denied three charges of conspiracy to commit a felony, conspiracy to defraud American businessman Seth Adams Bernstein of $1 million and forging an East Africa mineral export permit.
According to the prosecution, the two had agreed to sell gold valued at Sh16 billion to the businessman, who is the complainant in the case.
The foreigner is said to have paid Sh132 million as customs fees for 3,000 kilograms of gold to be shipped from the country to Dubai.
In the first count, the charge sheet read that on diverse dates between February 3 and 11, 2023, through Equity Bank Yaya Center Branch in Kilimani, Nairobi county jointly with others not before the court, the duo conspired to commit a felony namely obtaining money by false pretences to wit $1 million the property of Bernstein.
In the second count, the duo were charged that on February 11 this year at the same bank with intent to defraud, obtained from Bernstein $1 million which was wired to Ndolo's Equity Bank account by falsely pretending that a firm known as DSI Mining and Minerals company limited was in a position to custom duties for 3,000 Kilograms of gold to be shipped from Kenya to Dubai a fact they knew to be false.
In the third count, Businessman Ndolo was charged that on May 16, 2022, at an unknown place within the Republic of Kenya with intent to defraud, without lawful authority or excuse forged a document namely mineral export permit number EAC/22/92709141705/2022, purporting it to be a genuine permit issued by East African Community Customs.
According to investigations conducted by detectives from the Directorate of Criminal Investigations (DCI), the amount obtained by the suspects was a downpayment in the Sh16 billion deal.
It is said that after formal introductions, they agreed that the complainant would purchase 3,000kg of gold at $41,000 per kg totalling $123,000,000.
The two were arrested on March 14, 2023, in Kilimani area after the American lodged a complaint with the DCI.
The complainant told police he was introduced to Ndolo as a businessman dealing in gold business.
Ndolo then provided an account in a local bank account name Africorp Consultants Limited. According to police, the complainant later instructed his bank in the US to wire $1,000,000 on February 10, 2023, by way of a swift bank transfer into the account.
According to investigators, the businessman confirmed to have received the money and promised to contact the complainant to witness the packaging of the gold in readiness for shipment to Dubai.
It is said that the complainant waited in vain for an appointment to witness the packaging which then prompted him to request documentation in regard to the purchase of the said gold.
The complainant later realised that some of the documents such as the customs entry indicated on the declaration form dated March 8, 2023, were not genuine.
It was then that Ndolo started to avoid meeting the complainant and later started threatening him with deportation from Kenya.
This prompted the complainant to make a report at DCI Operations Support Unit, the report was then booked at Capitol Hill Police Station and upon investigations at Equity Bank where the money was wired, it was discovered that it is operated by the lawyer and that the whole amount had been transferred to other accounts.
Upon the arrest of the lawyer, it is said that a quick search was conducted and a firearm was recovered from the vehicle they were driving.
The recovered firearm is believed to have been used to commit crimes and is therefore subject to further forensic analysis as well as to establish how it was acquired by the Ngoe.
On learning that he was being sought, Ndolo surrendered himself at DCI headquarters where he was arrested for interrogation to establish his involvement in a supposedly gold business that never was.
The two are out on a cash bail of Sh500,000 each pending the hearing and determination of the case
