A company director has been charged with Sh30 million investment fraud after allegedly obtaining money from several investors by falsely promising them monthly returns of 15 percent.
Keeru Ngugi Mucheru, also known as Gideon Magu Ngugi, the director of Bidsworth Auto-Rent Company, appeared before Milimani Senior Principal Magistrate Robinson Ondieki and denied seven counts of obtaining money by false pretences.
Bidsworth director accused of Sh30 million fraud
The court heard that between February 1 and 9, 2023, Mucheru allegedly obtained Sh30 million from Ng’enda Location Ranching Company Limited.
The prosecution alleges that he falsely claimed he would invest the money through his company and pay the company a monthly interest of 15 percent.
According to the prosecution, Mucheru knew the representation was false.
Other investors allegedly lost millions
Mucheru also faces charges relating to money allegedly obtained from several individuals.
In one count, he is accused of obtaining Sh2.95 million from Monicah Muthoni Kariuki after promising to invest the money through his company and pay her a monthly return of 15 percent.
He is further accused of obtaining Sh1 million from Winnie Odoyo under similar promises.
The prosecution also alleges that Mucheru obtained a total of Sh2.9 million from Naibei Chepkorir, Agnes Wanjiru and Valentine Mwaura Njenga after assuring them they would earn monthly returns of 15 percent.
Director denies investment fraud charges
Mucheru denied all seven charges when he appeared before the magistrate.
Through his lawyer, he asked the court to release him on lenient bond terms, arguing that he was not a flight risk.
“Your honour, I plead with this court to release the accused person on lenient bond terms, considering that he is not a flight risk and also his age,” the defence lawyer submitted.
The prosecution did not oppose his release on bond but asked the court to consider the amount involved in the alleged fraud when setting the terms.
Court grants Sh2 million bond
Magistrate Ondieki released Mucheru on a bond of Sh2 million with a surety of a similar amount.
The court also granted him an alternative cash bail of Sh500,000 with one contact person.
