City businessman Edwin Ochieng Oduk is at the center of a major fraud case, accused of defrauding a French national of a staggering Ksh12.8 billion in a gemstone deal.
The high-profile case has captured attention due to the large sums involved and the intricate nature of the scam, which allegedly revolved around the sale and transport of coltan minerals.
According to court reports, the French national, identified as William Tuil, was lured into investing a substancial amount of money into what he believed was a legitimate gemstone deal.
Ochieng allegedly assured Tuil that the deal involved the shipment of 950 kilograms of coltan minerals from Gabon to Rwanda, with a sale price of $89 million (approximately Ksh12.8 billion).
Ochieng further convinced Tuil that the money from the sale of the minerals would be transferred to him after all logistics were handled.
However, the funds never materialized.
The fraudulent operation spanned several months, with the scam reportedly beginning in July 2022 and continuing until August 2023.
During this time, Ochieng allegedly demanded additional payments for various logistical needs, such as insurance, storage, and transportation of the money.
Tuil was even told at one point that the funds had been detained at Jomo Kenyatta International Airport (JKIA) in Nairobi, requiring further payments for clearance.
Ochieng’s arrest came after Tuil, frustrated by the delays and the lack of transparency, returned to Kenya to follow up on the supposed consignment.
After being told the money was held at JKIA, Ochieng demanded another $48,500 (about Ksh6.9 million) for insurance and the hiring of a private jet to transport the funds to Kigali, Rwanda.
At this point, Tuil suspected foul play and filed a complaint with the Directorate of Criminal Investigations (DCI).
A raid on Ochieng’s Nairobi residence in the upscale Brookside area uncovered 17 boxes that were supposedly filled with the cash consignment.
However, when police opened the boxes, they found them stuffed with stones, gravel, and tiles, a shocking revelation that confirmed the fraudulent nature of the operation.
Ochieng was arrested, and the case was taken to the Kibera Law Courts, where he was arraigned on charges of defrauding the French national.
During his court appearance, Ochieng’s lawyers argued against his detention, claiming that he was not a flight risk and that the police had not provided compelling reasons for his continued detention.
The court, led by Senior Principal Magistrate Charles Mwaniki, agreed with the defense and released Ochieng on a Ksh500,000 cash bail.
However, he was ordered to report to the Kilimani Police Station daily for a week as investigations continue.
The authorities are currently tracing the financial transactions involved in the case, as some of the money is believed to have been transferred out of Kenya.
The ongoing investigation seeks to determine how Ochieng orchestrated the elaborate scam and if any accomplices were involved in the operation.
The French national, meanwhile, faces a long battle to recover his lost funds, as the full extent of the fraud is yet to be uncovered.
This case highlights the growing risk of fraudulent schemes in Kenya’s gemstone and minerals trade, particularly targeting foreign investors.
The international scope of the scam, involving multiple countries and complex logistics, poses the sophistication of modern fraud operations.
It is expected to shed light on the broader challenges facing investors in high-value sectors such as the gemstone trade.
Add Comment