(Kampala) – The Directorate of Criminal Investigations (DCI) in Kenya has arrested 31 individuals connected to a large-scale gold fraud operation that swindled foreign investors out of nearly $40,000. The arrests were made after a series of raids across Nairobi’s affluent neighborhoods, including Runda, Ridgeways, and Industrial Area. This follows complaints from two businessmen based in Dubai, who reported losing $39,900 (about Sh5.1 million) to the fraudsters.
The investigation began when the two Dubai investors became suspicious after they repeatedly failed to receive shipments of 35 kilograms of gold that they had purchased through three separate transactions. The suspects had lured the investors with promises of lucrative deals but had crafted an elaborate illusion of legitimacy, operating from an office adorned with golden decorations, gold-colored beverage jars, and official-looking flags.
The DCI operation, which aimed to dismantle the fraud ring, led to the seizure of critical evidence, including four vehicles, metal boxes containing counterfeit gold bars and nuggets, communication equipment, and forged government documents. Among the counterfeit materials found were fake stamps, certificates of authorization from various government ministries, and uniforms resembling those used by officials, complete with branded reflector jackets and flags featuring Kenyan and East African emblems.
The investigation has pointed to Nashon Otieno Angudha as the alleged mastermind behind the scam. Angudha, who is already facing two ongoing court cases, has been accused of conspiracy to defraud under Section 317 of the Penal Code. One of these cases has now been expanded to include charges of robbery with violence after an incident involving assault and sexual violence by Angudha’s associates.
The long-running scheme was reportedly protected by powerful connections within government circles, which had previously helped shield the fraudsters from law enforcement. However, the DCI’s Operations Support Unit has successfully managed to breach these defenses. The authorities have also warned the public about the importance of conducting thorough due diligence before engaging in gold transactions, advising prospective buyers to verify the legitimacy of dealers through embassies, police authorities, or the Ministry of Mining.
The seized evidence has been cataloged and stored in a police exhibit store as the DCI continues its broader efforts to combat fraudulent operations in Nairobi and other parts of Kenya.