A key suspect in a multimillion-shilling gold scam has been arrested after nearly a year on the run. The suspect, believed to be one of the operational masterminds behind a syndicate targeting foreign investors, was apprehended on Sunday by detectives from the Operation Support Unit (OSU) following a sustained manhunt.

According to a police report, the suspect was linked to fraudulent gold purchase contracts involving over 1,080 kilograms of the precious metal. 

The contracts were presented to foreign nationals with promises of secure delivery, guaranteed collateral, and legal support to facilitate the transactions.

However, a forensic analysis conducted on the so-called gold revealed that the material was actually a deceptive mix of copper, zinc, and tin, with no trace of any precious metal. 

Gold bars on display.

Photo

NBC News

This confirmed suspicions that the entire operation was a sophisticated con targeting unsuspecting international buyers.

"The scam involved fake gold purchase contracts totalling over 1,080 kilograms, with false promises of secure delivery, guaranteed collateral, and fraudulent legal facilitation," read part of the police report.

"Investigations have since revealed that the purported gold was nothing more than a mixture of copper, zinc, and tin, with no trace of any precious metals," it added.

Police also indicated that another suspect believed to have played a supporting role in the scam is still at large. 

The operation builds on earlier investigations, including the arrest of a separate mastermind in connection with the same network on December 7 last year.

In the December case, investigations revealed that the victim entered into two separate gold purchase agreements with the scammer. On February 6, 2024, he was to purchase 500kg of gold, and on March 14th, 2024, another 580kg, with each kilogram priced at Ksh5.1 million (USD 40,000).

Additionally, the detectives established that the second contract was signed after the first deal failed, where the scammer promised to deliver the gold only after securing certain conditions, including the buyer's responsibility for jet chartering, payment of taxes, and insurance.

The suspect arrested on Sunday is currently in police custody and is expected to be arraigned on Monday, where he will face multiple charges related to fraud, conspiracy, and obtaining money by false pretences.

A photo collage of a handcuffed man and a police station in Kenya

Kenyans.co.ke