Detectives arrest suspect in $256,000 fake gold scam
Detectives from the Operations Support Unit have arrested Steve Okoth Odek, also known as David Bett, for orchestrating a fake gold scam that defrauded a foreign national of USD 256,000 in a scheme involving over 500kg of fake gold.
Investigations revealed that the victim entered into two separate gold purchase agreements with the suspect.
On February 6, 2024, the victim was set to purchase 500kg of gold, followed by another 580kg on March 14, 2024, with each kilogram priced at USD 40,000.
When the first deal failed, the scammer convinced the victim to sign a second contract, promising to deliver the gold on the condition that the buyer covered expenses such as jet chartering, tax payments and insurance fees.
However, the scammer once again failed to deliver and, to maintain the charade, provided 20kg of “gold bars” as collateral, stored at MySafe Vault.
Unaware of the fraud, the victim paid a total of USD 256,000 through two law firms: Owano & Associates Advocates (USD 126,000) and Alata & Co. Advocates (USD 139,200).
After receiving the funds, the suspect attempted to scam an additional USD 188,080, but the foreign national uncovered the fraudulent scheme and reported the matter to the authorities.
Detectives swiftly swung into action, recovering the 20kg of “gold bars” provided as collateral. A thorough analysis revealed that the bars were made of copper, zinc, and tin—a sophisticated scam with no traces of gold.
Further investigations exposed that the suspect’s company, PCL Natural Resources Limited, was not licensed by the Ministry of Mining to deal in gold or any precious metals.
Armed with this critical information, detectives successfully tracked down and arrested Odek, who is now in police custody pending further legal action.
The authorities have warned individuals and investors to remain vigilant and verify all dealings involving precious metals to avoid falling victim to such elaborate scams.