Another suspect in Sh38 million fake gold scam arrested in Nairobi

Another suspect Sh38 million fake gold scam arrested in Nairobi

A team of detectives from the operation support unit (OSU) Sunday arrested Tim Orao Shikalo, a key suspect who has long been on the police radar for his role in a sophisticated gold scam that defrauded a foreign investor of USD265,200 (approximately Sh38 million).

His arrest marks a significant breakthrough in the ongoing investigation, following the earlier apprehension of Steve Okoth Odek (alias David Bett) on December 7, 2024, who was arraigned and charged in connection with the same fraudulent scheme.

The scam involved fake gold purchase contracts totaling over 1,080 kilograms, with false promises of secure delivery, guaranteed collateral, and fraudulent legal facilitation.

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.

Shikalo was detained in police custody and undergoing processing ahead of his arraignment.

Meanwhile, detectives are closing in on two additional suspects believed to be part of this elaborate criminal syndicate.

Investigations have revealed that the victim entered into two separate gold purchase agreements with the scammer where on February 6, 2024 he was to purchase 500 kilos of gold and on March 14, 2024 another 580 kilos with each kilogram priced at USD 40,000.

Additionally, the detectives have 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.

Police have intensified operations against gold scammers arresting dozens of suspects.

Most of the cases are pending in courts.