Detectives from the Directorate of Criminal Investigations (DCI) in a joint operation with officers from the Kenya Police Service (KPS) have arrested a suspected fraudster, Stephen Magero, in connection with a multi-million shilling fake gold scam targeting a Pakistani national.
Magero was dramatically arrested at Sultan Suites, Ngong View Estate in Lang’ata Sub-county, after a complaint was filed at Karen Police Station by the foreign national who claimed he had been duped into paying USD 34,800 (KSh 4.5 million) for counterfeit gold.
Elaborate Scam Uncovered
Investigations revealed that Magero presented the victim with what he claimed was 500 grams of genuine gold. Trusting the deal, the complainant handed over the cash, only for subsequent laboratory testing to confirm the bars were fake.
The shock discovery prompted the Pakistani national to report the incident, setting off a manhunt that led detectives straight to Magero’s hideout.
What Police Recovered
During a search of his premises, officers unearthed evidence of a sophisticated fraud operation. Items recovered included:
Ten (10) bars of suspected fake gold
Business cards printed under the name John Mbalaka
A MacBook Pro laptop believed to contain records of fraudulent dealings
Smelting machines and related apparatus
A mining certificate under the name Chawanda Minerals
A weighing machine
Two plastic boxes filled with sand
Several assorted files and documents linked to the scam
Police say the recovered exhibits point to a well-coordinated criminal enterprise designed to trick unsuspecting buyers into parting with huge sums of money.
Wider Scam Network?
The arrest of Magero adds to the long list of fake gold scams that have tarnished Kenya’s reputation internationally, often involving unsuspecting foreign nationals lured into bogus deals. Detectives believe Magero may be part of a wider cartel that has been operating under the guise of legitimate mining and gold trading businesses.
Authorities are now keen to pursue further leads, including associates linked to Chawanda Minerals and the alias John Mbalaka.
Pending Arraignment
Stephen Magero is currently being held in custody as investigations continue. He is expected to be arraigned in court to face charges of fraud and possession of fake minerals.
Police have urged members of the public and international investors to exercise caution and conduct due diligence before engaging in gold transactions in Kenya.
