Seven Directors of NMK Capital Investment Limited have been charged before a Nairobi court with conspiracy to defraud unsuspecting members of the public over Ksh1 billion in a fake real estate scheme.
Appearing before Milimani Magistrate Ben Mark Enhubi, the nine suspects namely Keeru Ngugi Mucheru, Amos Macharia Maina, Joan Gathoni, Fredrick Kariuki Makumi, aGidion Charagu Mwangi, Shiphira Wantui Kanyinti, Agatha Wanjugu Mwaniki and NMK Capital investment Limited, abide worth auto-rent company, NMK Estate Developers Limited denied twenty-one charges of conspiracy to defraud and obtaining money by false pretences from several investors.
State prosecutor Virginia Kariuki told the magistrate that besides the twenty-one investors in court today more have record statements with the Director of Criminal Investigations ( DCI) bringing to over Ksh1 billion the amount the seven have allegedly defrauded the public in the fake development scheme.
The prosecutor, while stating she is not opposed to the release of the accused on bond, urged the court to consider the case as of great public interest as they have defrauded unsuspecting members of the public in excess of Ksh1 billion.
In count one the seven accused denied that on diverse dates between October 28, 2021, and July 16, 2023, at Nairobi Central Business District within Nairobi County in the Republic of Kenya, jointly with others not before court being the directors of NMK Capital Investment Limited and NMK Estate Developers Limited jointly conspired to defraud unsuspecting members of the public Ksh45,558,731.
The Prosecution told the court that accused persons duped members of the public into believing that they would earn interest of 15 per cent for their deposit ranging from Ksh1.8 million to Ksh5 million.
The suspects denied that in cahoots with others, they defrauded the colossal sum.
Mucheru whom police believe is the mastermind of the fraudulent real estate scheme faced numerous charges of obtaining money through pretences.
The court heard that on diverse dates between July 20, 2023, and May 29, 2023, Mucheru obtained Ksh5.06 million from Damaris Muthoni Kamau falsely pretending he could invest the same in his bid worth auto-rent company and giving her 15 per cent monthly interest.
He was also charged with defrauding Pius Kinyambu Ksh4.5 million and Paul Msava Mutwii Ksh4.3 million using the same tricks.
Others defrauded in the scheme are Catherine Mwangi, Margaret Muthoni Njoronge, Daniel Kariuki, Vincent Egessah, Samuel Kinyara and Paul Mwangi.
After denying the charges, Kariuki said that Mucheru was a flight risk and should not be admitted to a cash bail.
She sought to have him granted bond terms with two sureties of colossal sum and coupled with two senior government contact persons.
The court heard that police have received information that the company is enlisting new investors who may fall victim to the fraudulent scheme.
The accused persons Duncan Okatch and Edward Oonge urged the court to release them on lenient bond terms saying they have been cooperating with DCI detectives since January this year.
Magistrate Ekhubi said he ordered Mucheru to be released on Ksh20 million bonds with a surety of a similar amount and to avail one government senior officer as a contact person.
He however ordered the rest of the accused persons to be released on Ksh600,000 bond with an alternative cash bail of Ksh300,000 with two contact persons to be examined by the court.
The case will be mentioned on October 16.
