Home Court News Directors in Sh 1 billion in a fake real estate scheme have been charged.

Directors in Sh 1 billion in a fake real estate scheme have been charged.

by Robert Guyana

Seven Directors of NMK Capital investment limited have been charged before a Nairobi court with conspiracy to defraud unsuspecting members of the public over Ksh 1 billion in a fake real estate scheme.

Appearing before Milimani Magistrate Ben Mark Enhubi the nine suspects namely Keeru Ngugi Mucheru, Amos Macharia Maina, Joan Gathoni, Fredrick Kariuki Makumi, aGidion Charagu Mwangi, Shiphira Wantui Kanyinti, Agatha Wanjugu Mwaniki and NMK Capital investment Limited, abide worth auto-rent company, NMK Estate Developers Limited denied twenty one charges of conspiracy to defraud and obtaining money by false pretenses from several investors.

State prosecutor Virginia Kariuki told the magistrate that besides the twenty one investors in court today more have record statements with DIrector of Criminal Investigations ( DCI) bringing to over Sh 1 billion the amount the seven have allegedly defrauded the public in the fake development scheme.

The prosecutor, while stating she is not opposed to the release of the accused on bond, urged the court to consider the case is of great public interest as they have defrauded unsuspecting members of public in the excess of Sh 1 billion.

In count one the seven accused denied that on diverse dates between October 28,2021 and July 16 2023 at Nairobi Central Business District within Nairobi County in the Republic of Kenya, jointly with others not before court being the directors of NMK Capital investment limited and NMK Estate developers limited jointly conspired to defraud unsuspecting members of the public Ksh 45.558.731.

The Prosecution told the court that accused persons duped members of the public into believing that they would earn interest of Sh 15 percent for their deposit ranging from Ksh 1.8 Million to Ksh 5 million.

The suspects denied that in carhoots with others they defrauded the collosal sum.

Mucheru whom police believe is the mastermind of the fraudulent real estate scheme faced numerous charges of obtaining money through pretences.

The court heard that on diverse dates between July 20,2023 and May 29, 2023 Mucheru obtained Sh 5.06 million from Damaris Muthoni Kamau falsely pretending he could invest the same in his bidworth Auto-rent company and give her 15 percent monthly interest.

He was also charged with defrauding Pius Kinyambu Ksh 4.5 million and Paul Msava Mutwii Ksh 4.3 million using the same tricks.

Others defrauded in the scheme are Catherine Mwangi , Margaret Muthoni Njoronge, Daniel Kariuki, Vincent Egessah, Samuel Kinyara and Paul Mwangi.

After denying the charges, Kariuki said that Mucheru is a flight risk and should not be admitted to a cash bail.

She sought to have him granted bond terms with two sureties of colossal sum and coupled with two senior government contact persons.

The court heard that police have received information that the company is enlisting new investors who may fall victim to the fraudulent scheme.

The accused persons through Duncan Okatch and Edward Oonge urged the court to release them on lenient bond terms saying they have been cooperating with DCI detectives since January this year.

Magistrate Ekhubi said he ordered Mucheru to be released on Ksh 20 million bond with a surety of similar amount and to avail one government senior officer as contact person..

He however ordered the rest of the accused persons to be released on Ksh 600,000 bond with an alternative cash bail of Ksh 300,000 with two contact person to be examined by the court.

The case will be mentioned on October 16.

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