Authorities have arrested a second suspect in a high-profile gold scam linked to an American national’s reported loss of USD 217,900.
The suspect, a businessman operating under a registered company in Kenya, is facing charges of money laundering as investigators continue to examine a complex web of financial transactions.
According to the Directorate of Criminal Investigations (DCI), sleuths from the Operation Support Unit (OSU) apprehended the suspect following the earlier arrest of another individual who was arraigned at Milimani Law Courts on February 16, 2026.
The first suspect is facing multiple charges, including conspiracy to defraud, obtaining money by false pretences, and offences related to the acquisition, possession, and use of proceeds of crime under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) No. 9 of 2009.
Investigators say the case centres on a transaction carried out on February 3, 2026, in which the second suspect received USD 217,900 through his company’s account at a bank in Kenya.
The funds were debited from accounts and were intended to pay for 495 kilograms of gold that was reportedly not delivered. Instead, the money was quickly wired overseas to accounts at a bank in Hong Kong, reportedly to facilitate a shipment of mobile phones yet to arrive in Kenya.
The DCI has described the transfer as part of transactions now under active investigation.
“The document presented by advocates, a debt settlement agreement, was merely a smokescreen,” the agency said. Detectives indicated that the paperwork was believed to have been intended to mask the transaction, highlighting methods investigators say are often associated with money laundering inquiries.
Investigators have also revealed that the suspect maintained a business relationship spanning over a decade with a forex bureau.
The bureau’s proprietor is believed by investigators to have facilitated large cross-border transfers, including the one under investigation. “The forex bureau is believed to have played a key role in the laundering of funds,” the DCI noted.
The second suspect, who operates a business dealing primarily in mobile phones sourced from Hong Kong, is currently in custody, undergoing processing ahead of his arraignment. Meanwhile, authorities are pursuing three additional suspects who remain at large.
The case has drawn attention to Kenya’s vulnerability to gold-related fraud schemes, which often target foreign investors. The DCI said it remains committed to tackling such crimes and safeguarding the country’s financial integrity.
“This case underscores our commitment in the fight against gold scams and money laundering, through relentless pursuit of fraudsters who seek to exploit investors and tarnish the country’s reputation,” a statement from the agency read.
The first suspect’s charges included conspiracy to defraud under Section 317 of the Penal Code, obtaining money by false pretences under Section 313, and multiple POCAMLA violations relating to proceeds of crime. The ongoing investigation reflects a coordinated effort by authorities to trace financial flows and ensure due legal process.
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