Flamboyant businessman Jared Otieno has been arrested after he presented himself to the Directorate of Criminal Investigations.
This was after a Chinese national claimed Otieno and others had defrauded him of Sh300 million pretending they would supply him with gold.
The Chinese national complained to the officers in Nairobi.
DCI boss George Kinoti said detectives seized Otieno’s Porsche and Bentley that were parked at his new, ritzy home in Karen, Nairobi.
Kinoti said Otieno was wanted and his team had been looking for him since last week.
“He has been arrested and we are looking for more suspects in this issue,” he said.
It is not the first time Otieno is being arrested over similar claims.
Otieno surrendered to police this morning after learning he was wanted over the issue. Police had been to his homes but failed to find him.
“I don’t know what I have done but I have surrendered to the police. I am ready for any action for now,” he said.
Kinoti said several suspects who are now on the run had been mentioned in the issue and are being sought.
He added Otieno had been identified in CCTV footage confiscated from a house in Kileleshwa area on Monday as the owner of the premises and the main driver of the business.
Detectives from the cybercrime unit are studying CCTV footage confiscated from a house where fake gold was seized on Monday.
Police told the court that detectives are pursuing more suspects who are believed to be at large as well as obtain elimination prints to establish the suspects’ movements.
Police say they suspect the suspects are engaging in cyber-related crimes within and outside the country hence the country at risk. The tenant is yet to be known but police said they are waiting for leases signed between the owner and tenant.
Fifteen suspects who were arrested in the operation will remain in police custody for seven more days pending the conclusion of investigations.
The accused were arraigned in court on Tuesday where the prosecution sought for more time to conclude investigations.
In a miscellaneous application, police told the court more time was needed to establish the nationalities of three of the suspects- Abouma Famous, Salim Ali Abubakar and Albert Likole Lokunda.
The investigators also said they were yet to confirm the genuineness of the metal bar alleged to be gold that was recovered in the respondents’ office on Kaputei road in Valley Arcade, Nairobi.
The suspects were nabbed in a rented stand-alone house on Kaputei road in Valley Arcade, Nairobi, where fake gold was also discovered.
The consignment bearing Ghanian custom papers was stuffed in metallic boxes and their weight had been altered using cement and mallets.
Eight vehicles belonging to the suspects bearing fake number plates were also seized during the raid.
The officers said the raid was part of a larger operation that is ongoing on the fraudsters operating in the country.
This followed numerous complaints that had been registered with the DCI with many foreigners being conned.
“We receive at least two complaints that they have been defrauded of money in a gold syndicate. And they give similar descriptions on the players in the ring,” said another officer aware of the probe.
The operation was triggered by a complaint by members of Dubai royal family that was defrauded close to Sh400 million by some of the players in the syndicate.
The complaint and subsequent probe into the matter forced police to raise concerns over rising cases where foreigners are conned of money by Kenyans operating with fake gold bars.
The probe is set to start officially after the complainant or their representative records a statement with the police.
Kinoti urged Embassies and High Commissions to advise their nationals coming in for business.
“The gold scam has now reached alarming levels as unsuspecting foreign nationals are being swindled large amounts of money by fraudsters,” he said.
Kinoti said Kenyans and foreign nationals must ensure that they conduct proper due diligence on the person(s) they intend to engage in the gold buying business.
The police boss said foreigners should first contact the Department of Mines and Geology for briefing on the gemstone trade in the country
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