Home Court News Nairobi advocate, co-accused face multi-million dollar gold scam charges

Nairobi advocate, co-accused face multi-million dollar gold scam charges

by Faith Karanja

A Nairobi advocate and his co-accused are facing multi-million dollar gold scam charges at the Milimani Law Courts after prosecutors linked them to an alleged fake gold sale scheme.

The accused persons, Alphonce Collins Odowo Osewe and Patroba Odhiambo Tobias Allen Ishmael, face several economic crime charges relating to alleged fraud and money laundering.

The two appeared in court as the prosecution prepared to present evidence over claims that they obtained millions of shillings through a fake gold transaction.

Advocate’s health delays plea taking

Court proceedings delayed after advocate Alphonce Osewe failed to appear for plea taking due to reported illness.

His defence team requested a 30-day adjournment, stating that Osewe had been admitted at Aga Khan Hospital and required specialised medical treatment.

The defence described his condition as a delicate medical matter that required further attention outside the country.

However, the prosecution opposed the request.

Prosecutors told the court that the defence had not provided medical documents confirming the advocate’s condition. They also argued that a 30-day delay was unnecessary.

Accused face gold fraud allegations

According to the charge sheet filed by the Office of the Director of Public Prosecutions (ODPP), the accused allegedly carried out the scheme between May 1 and May 9, 2023, in Nairobi County.

The prosecution claims that Osewe and Ishmael obtained USD 260,400, equivalent to about KSh 35.7 million, from Bernard Shicundu Aete.

The two allegedly promised to sell him 400 kilograms of gold bars despite knowing that the transaction was false.

In a separate charge, Osewe faces allegations of obtaining KSh 26.1 million from Adeyeye Enitan Ogunwusi through a similar gold sale arrangement.

Money laundering charges

The accused also face charges under the Proceeds of Crime and Anti-Money Laundering Act.

The prosecution alleges that they acquired, used, and handled funds linked to criminal activities.

The charges reflect a wider investigation into financial crimes involving fraud, illegal transactions, and movement of suspected proceeds of crime.

Court directs advocate to appear

The magistrate ordered Osewe to appear in court for plea taking without further delay.

The court allowed his existing bond terms to remain in place.

Meanwhile, Ishmael remained in custody as the court considered his bond application.

The defence argued that Osewe was not a flight risk because he is a practising advocate with a known address and had attended previous court sessions.

Case to continue

The court will continue hearing the matter as both sides prepare their submissions.

If convicted, the accused persons could face serious penalties, including imprisonment, asset forfeiture, and possible professional disciplinary action.

The court will also determine bond terms for the second accused as the case progresses.

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