Nairobi Lawyer and Associate Accused of Defrauding Ksh.35 Million in Fake Gold Deal
Chief Magistrate Onyina granted the prosecution’s request and instructed them to make the necessary application by the following day.
. The investigators allege the two knew or had reasonable grounds to believe the money was fraudulently obtained.Photo/courtesy.
By Ruth Sang
A Nairobi lawyer, Alphonce Collins Odoyo Osewe, and his co-conspirator, Patroba Odhiambo Tobias, alias Ishmael, were arraigned in court for allegedly swindling two individuals of more than Ksh.35 million in a fraudulent gold trade transaction.
The two suspects, according to the prosecution, allegedly misled one of the complainants, Bernard Shiaundu Aete, that they had the capability to supply 400 kilograms of gold bars. It is upon this assertion that they allegedly obtained USD 260,400, which is around Ksh.35.7 million, from Aete.
However, when the matter came up for hearing before Chief Magistrate Lucas Onyina, lawyer Osewe failed to appear in court. His advocate informed the court that he had been admitted at the Aga Khan Hospital and was medically unfit to enter a plea.
Meanwhile, his co-accused, Tobias, was brought before the court and denied the offenses. The prosecution requested additional time to prepare and submit an affidavit to counter his release on bail, stressing the severity of the crimes and the huge amount of money involved.
Chief Magistrate Onyina granted the prosecution’s request and instructed them to make the necessary application by the following day. Tobias was thus remanded at Capital Hill Police Station pending further instructions from the court.
Osewe and Tobias face six charges, including acquiring money by false pretenses and acquiring proceeds of crime. The charge sheet indicates the accused persons illegally obtained Ksh.35.7 million from Aete and an additional Ksh.26.1 million from another complainant. The investigators allege the two knew or had reasonable grounds to believe the money was fraudulently obtained.
The prosecution outlined how the accused persons orchestrated a sophisticated scheme aimed at deceiving investors into believing they were real gold dealers who could handle large-scale mineral transactions. The unsuspecting investors, lured by promises of hefty returns, wired huge sums of money before realizing the deal was a con.
The issue was postponed to allow the prosecution more time to finish its affidavit against bail. The court will then rule on the bail application once all submissions have been made.
The case is still causing public interest, with it forming part of a growing number of cases where individuals, including professionals, are being accused of taking part in complex gold scam schemes on unsuspecting investors.
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