Five Suspects Arrested in Sh15M Gold Scam Targeting Foreign Investors
Gold Scam Leads to Five Arrests
Gold scam cases are becoming increasingly common, with unsuspecting victims losing large sums of money to fraudsters. Police in Kenya have arrested five individuals suspected of being part of a well-organized gold scam that defrauded two foreign investors of Sh15 million (USD120,000). The victims, a Swiss and a Romanian national were led to believe they were purchasing 550 kilograms of gold stored in a warehouse, but the entire deal was a ruse.
According to the Directorate of Criminal Investigations (DCI), the victims filed a complaint at Wilson Airport Police Station on January 29, 2025. Investigations revealed that the prime suspect and his associates tricked the businessmen into believing that the gold was awaiting clearance for transport. After making the full payment, the investors realized they had fallen into an elaborate scam and sought legal intervention.
How the Gold Scam Unfolded
The gold scam began when a contact introduced the victims to a businessman claiming to have access to gold. He convinced them that he was selling 550 kilograms of gold stored at Jomo Kenyatta International Airport (JKIA). The investors were assured that once they paid Sh15 million, the gold would be released and transported to their destination.
Once the full payment was made, the victims were repeatedly misled with excuses about clearance delays and logistical challenges. Days turned into weeks, and no gold was delivered. The foreign nationals grew suspicious and reported the matter to authorities, prompting immediate investigations.
DCI Investigation Leads to Arrests
After receiving the complaint, detectives launched an investigation, uncovering critical evidence of fraud. On January 31, 2025, officers raided offices linked to one of the suspects and arrested two individuals, Lucy Gitonga and Rose Kambua. The operation also led to the confiscation of documents, laptops, and expired mineral licenses.
Further investigations led detectives to Mount Kenya Wildlife Estate in Nanyuki’s Ol Pejeta Conservancy. There, they arrested Lamarca J. Benjamin, alias Morlon, who was identified as the mastermind behind the scam. Another suspect, Justine Adhiambo, was also taken into custody.
During the raid, officers recovered two Glock pistols, 96 rounds of 9mm ammunition, a pair of handcuffs, a bulletproof vest, and multiple fake seals and stamps. The Firearms Licensing Board later confirmed that Lamarca was not a licensed firearm holder.
More Evidence Recovered
Detectives continued their crackdown on February 2, 2025, conducting another raid at Lamarca’s residence in Riverside Pearl, Kileleshwa, Nairobi. The operation resulted in the recovery of more incriminating evidence, including three 9mm tracer bullets, 14 smoke grenades, a Toyota Land Cruiser V8, and additional fraudulent documents related to the gold scam.
Authorities suspect that the syndicate had been operating for years, targeting foreign investors seeking to purchase gold in Kenya. The elaborate nature of the scheme suggested a well-coordinated effort involving multiple players who created the illusion of a legitimate transaction.
Legal Action and Ongoing Investigations
Following their arrests, two of the suspects have already been arraigned in court, where investigators secured custodial orders to continue gathering evidence. The remaining three suspects are expected to appear in court soon.
DCI officials have urged anyone who may have fallen victim to similar gold scams to come forward and assist with investigations. Authorities believe that more people could be involved in this syndicate and are working to dismantle the entire network.
The gold scam case has once again highlighted the growing challenge of fraudulent activities in the precious metals trade. Investors are advised to conduct thorough due diligence before engaging in high-value transactions, especially in industries prone to fraud.
DCI’s Warning on Gold Scams
The DCI has warned individuals against engaging in suspicious gold transactions, particularly those that promise quick profits. Many international investors have fallen victim to scams where fraudsters pose as legitimate gold dealers, only to disappear after receiving payments.
Kenyan authorities have been cracking down on such fraudulent activities, emphasizing the importance of working with licensed dealers. The latest arrests serve as a strong warning to criminals involved in gold-related fraud.
The Way Forward
As investigations continue, police are working closely with financial institutions and regulatory bodies to track illegal financial transactions linked to gold scams. The suspects will face charges related to fraud, illegal firearm possession, and obtaining money by false pretense.
The five suspects now remain in custody as the case unfolds. Meanwhile, authorities remain vigilant in preventing similar gold scams that have cost investors millions. The gold scam incident serves as a lesson for investors to remain cautious and verify transactions before making large payments.
The fight against gold scams is far from over, but with continued vigilance and law enforcement efforts, authorities aim to bring more fraudsters to justice. Investors are urged to remain alert to avoid falling victim to gold-related scams in the future.
