Three members of a family have been sentenced to prison by the Kisumu Magistrate’s Court after being found guilty of money laundering, business fraud and theft involving Ksh113.2 million belonging to Kisumu-based Such Enterprises Limited.
The Director of Public Prosecutions (DPP) secured the convictions and sentences against Christopher Joseph Okal, his brother Vincent Anyumba and their mother, Grace Minayo Okal, following a trial in which the prosecution presented evidence of a fraudulent scheme targeting the company between October 2020 and July 2021.
Senior Principal Magistrate Fatuma Rashid found the three guilty of all six counts of money laundering and acquisition and possession of proceeds of crime.
They were each sentenced to 10 years in prison for the offences under the Proceeds of Crime and Anti-Money Laundering Act.
The family members were also sentenced to an additional five years in prison each for conspiracy to commit a felony under the Penal Code.Christopher Okal, who worked as an accountant at Such Enterprises Limited, received a further five-year sentence for stealing by servant, fraudulent false accounting and stealing.
His mother, Grace Minayo Okal, and brother, Vincent Anyumba, were each sentenced to an additional three years for stealing.
The prosecution, led by Deputy Director of Public Prosecutions Daniel Karuri and Principal Prosecution Counsel Douglas Moseti, presented evidence showing how customer payments and wholesale goods worth Ksh113.2 million were fraudulently diverted from the company.
The court heard that the three knowingly handled money and property obtained through the theft, with the intention of concealing or disguising their source and ownership.
During the trial, the prosecution called witnesses, including company employees, customers, bank officials, forensic examiners and investigating officers, to explain how the scheme was carried out.
Evidence presented before the court showed that Christopher Okal manipulated the company’s accounting system by creating fictitious transactions and diverting customer payments to bank and mobile money accounts linked to his co-accused.
Forensic document examination established that Okal used his access privileges to alter company records and conceal transactions.
An audit report also identified Ksh113,227,529 that had not been accounted for.
The court further heard that customers were instructed to deposit payments for goods into accounts associated with the three family members instead of the company’s official accounts.
The accused denied the charges, arguing that the transactions were legitimate business arrangements. However, the court rejected their defence, finding that the prosecution had demonstrated a coordinated plan to defraud the company and conceal the proceeds.
In her ruling, Magistrate Rashid said the prosecution had persuaded her that Christopher Okal was the mastermind behind the scheme.
She found that he had used accounts belonging to his mother and brother to receive sales proceeds in an attempt to conceal the trail of the money.
During sentencing, Karuri urged the court to impose at least 10-year prison terms for the theft and money laundering activities linked to the diverted payments.
After weighing the prosecution’s evidence against the defence, the magistrate found that the case had been proved against all three accused on every count.
She consequently convicted and sentenced them under Section 215 of the Criminal Procedure Code.
The court ordered that the prison terms run concurrently.
The three convicts have 14 days to appeal against both their convictions and sentences.
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