Another person of interest has been arrested in connection with a sophisticated gold scam that defrauded an American national of USD 217,900 (Ksh28.1 million).
The individual, who owns a Kenyan-based mobile phone trading company, was taken into custody by detectives from the Directorate of Criminal Investigations’ Operation Support Unit.
The arrest follows the earlier detention of another person of interest, arraigned at Milimani Law Courts for their role in the same scheme. Investigations reveal that the operation involved the sale of 495 kilograms of gold, which was never delivered despite payments being made.
In a statement on Wednesday, February 18, 2026, authorities disclosed that the newly arrested individual received a swift transfer of USD 217,900 through their company’s bank account, funds that were purportedly payment for the gold. Shortly after, the money was sent overseas to accounts in Hong Kong, allegedly to facilitate a shipment of mobile phones that had not yet arrived in Kenya.
“Sleuths from the Operation Support Unit (OSU) have arrested a second person of interest for money laundering involving proceeds from a gold scam that fleeced an American national of USD 217,900 in a deal that promised glitter but delivered dust. The individual, the sole proprietor of Mohazcom Trading, a registered Kenyan business that deals in mobile phones sourced primarily from Tecno Mobile Limited in Hong Kong, now finds himself on the wrong side of the law as investigators tighten the noose on a well-orchestrated scheme,” the statement read in part.
Further investigations have uncovered that the individual maintained long-term relationships with a local forex bureau, which is believed to have facilitated cross-border fund transfers. Detectives also found attempts to cover up the transaction through fabricated debt agreements, creating an illusion of legitimacy.
“The Directorate of Criminal Investigations remains committed to fighting gold scams and money laundering. We will relentlessly pursue anyone who seeks to exploit investors and tarnish the country’s reputation,” DCI stated.
Adding;
“The scam involved creating fictitious logistics companies and fabricated legal documents to make the transactions appear legitimate. It was a well-planned operation targeting unsuspecting investors.”
Despite one individual securing anticipatory bail before reporting to DCI headquarters, the courts granted a bond, and authorities continue to track three other individuals connected to the scheme. The case is set for mention on March 3, 2026.
“The level of planning in this case is alarming. It shows the sophistication of these fraudsters, but also highlights the need for investors to exercise caution,” DCI added.
