NAIROBI, Kenya — Detectives from the Directorate of Criminal Investigations (DCI) based at Central Police Station are investigating a high-stakes gold fraud in which an American national says he was swindled out of about KSh37 million during a purported gold purchase in Nairobi’s Kilimani area.
The complainant, identified as David White Odell, told investigators he travelled to Kenya to buy 150 kilogrammes of gold and paid the money upfront after being shown what he believed was a legitimate smelting operation.
Police say suspects used elaborate setups to convince potential buyers that the gold was genuine, before disappearing with the funds.
Two suspects; Paul Chogo and Collins Onyango Opinde, are now wanted in connection with what detectives describe as a sophisticated gold scam network operating along Rosewood Avenue in Hurlingham.
“I witnessed an operation where they were smelting. They had 150kg there in nugget form and they did the smelting there at the compound. The gentleman that was the shipping agent is Collins, and the gentleman who approached us and conversed with us for a good period of time his name was Paul,” Odell said in a statement recorded by police.
Investigators say Odell was led to believe the gold would be securely stored and shipped to the United States once payment was completed.
On December 12, an agreement was reportedly reached to place the consignment in a vault room under the company name Sky Eagles Ultra Vault Ltd.
“Observing the smelting process was very professional. We thought this is a professional operation. So, they produced the first smelting batch as the initial collateral for the 50 kgs and gave it to a center box. We prioritized this box here on the seventh jointly with Paul Chogo,” Odell added.
He further described how the vault arrangement was presented as a safeguard for both parties.
“We both had joint combinations Paul Chogo…had two of the four digits to get it open. He put in his two, turned back, and then I put in mine. That was set. So we came back on the 3rd. After we agreed to proceed with the 150kg, more collateral was to be provided. We returned that evening or the next day, and Collins gave us an additional four kilograms in a separate box,” Odell said.
As doubts emerged over the shipment, Odell said the suspects changed their account, claiming the gold could not be exported as normal cargo.
“After it was all done, they said, ‘Well, we can’t ship it as cargo, we have to hire a jet.’ So the next morning, he sends a video saying he’s flying to Uganda. He tried to switch the story, saying he sent the whole consignment to Uganda. Then we were told to go get the documents. We took another flight, but were told, ‘Oh, you’re too late, customs is closed,’ and these guys were ready to go,” he said.
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Journalists from Vivid Voice News later visited Central Police Station, where the box allegedly containing the purchased gold was opened in the presence of officers. Inside were six pieces resembling gold bars.
Police said the samples have since been submitted to the Ministry of Mining for laboratory analysis to establish whether the material is genuine gold.
According to investigators, reports of fake gold deals have increased in Nairobi in recent years, with fraudsters targeting foreign buyers using rented premises, fake vaults and staged smelting demonstrations.
The DCI has warned investors to exercise caution and to verify licences and mineral documentation before engaging in gold transactions.
Detectives say efforts are ongoing to trace the suspects and recover the stolen funds.
