By Njoroge David
Detectives in Nairobi are holding a suspect accused of defrauding a Canadian investor of $280,000 (Sh41.4 million) in a fake gold deal.
Abbas Bardu Omuyoma, alias Ishmael, was arrested on Monday, September 17, along Dennis Pritt Road after a complaint was filed on Sunday, September 1. Police said he worked with an accomplice still at large to lure the investor with promises of 550 kilograms of gold nuggets and bars allegedly sourced from the Democratic Republic of Congo.
“Together with an accomplice who remains at large, Ishmael orchestrated a conspiracy, luring the investor with promises of 550 kilograms of gold,” said the Directorate of Criminal Investigations.
The investor transferred the money into Tether (USDT) cryptocurrency but later discovered there was no gold. Police said the syndicate used forged documents and claimed links to mining operations in the DRC to make the deal appear legitimate.
“Believing the deal was genuine, the investor transferred $280,000 (Sh41.4 million) via USDT. No gold ever materialised,” noted the DCI.
Investigators said Ishmael had been on their radar and is believed to belong to a wider network targeting foreigners seeking quick returns from East and Central Africa’s gold trade.
“Currently in custody, Ishmael is undergoing processing pending arraignment. Detectives are pursuing his accomplice,” explained police.
A Ministry of Mining official, who requested anonymity, said such fraud undermines Kenya’s credibility in global trade.
“We urge foreign investors to verify all transactions through official government channels before committing funds,” said the official.
The case mirrors past scams involving victims from Dubai, Europe, West Africa and the United States.
In 2019, a Dubai royal lost millions of dollars, while in 2023, an American investor lost more than Sh25 million in another fake deal.
Kenya has emerged as a hotspot for gold fraud, with syndicates using forged papers, staged displays and fake companies to exploit foreign investors.
