Detectives from the Directorate of Criminal Investigations (DCI) have arrested Steve Okoth Odek, alias David Bett, for orchestrating a fake gold scam that defrauded a foreign national of USD 256,000. The arrest, made by the Operations Support Unit, was announced on 8th December 2024 via the DCI’s official X platform (formerly Twitter).
The Scheme: Two Gold Purchase Contracts
Investigations revealed that the victim entered into two separate gold purchase agreements with Odek. The first, signed on 6th February 2024, involved the purchase of 500kg of gold, priced at USD 40,000 per kilogram. When this deal failed, the scammer persuaded the victim to sign a second contract on 14th March 2024 for an additional 580kg, promising to deliver under specific conditions, including the victim covering jet chartering costs, taxes, and insurance.
Despite these arrangements, Odek failed to deliver the promised gold. To maintain the façade, he provided the victim with 20kg of alleged gold bars as collateral, which were stored at MySafe Vault. Unknown to the victim, the “gold bars” were fake, composed of copper, zinc, and tin.
The Financial Losses
The victim unknowingly paid USD 256,000 to two law firms involved in the transactions:
- Owano & Associates Advocates: $126,000
- Alata & Co. Advocates: $139,200
Odek later attempted to scam an additional USD 188,080, but the victim uncovered the fraud and reported it to authorities before further losses were incurred.
Crackdown on Fake Gold Operations
Following the complaint, detectives launched an extensive investigation, recovering the 20kg of fake “gold bars.” A thorough analysis confirmed the absence of any precious metals. Further probing revealed that Odek’s company, PCL Natural Resources Limited, was not licensed by the Ministry of Mining to trade in gold or precious metals.
Armed with this evidence, law enforcement tracked down and arrested Odek, who is now awaiting arraignment.
The Bigger Picture
The DCI has issued a warning to potential investors in the gold trade to verify the credentials of companies and individuals before engaging in transactions. Scammers often exploit unsuspecting victims by creating elaborate setups, complete with forged documents and fake collateral.
Conclusion
The arrest of Steve Okoth Odek serves as a stark reminder of the risks in the gold trade industry. As investigations continue, authorities are urging victims of similar scams to come forward.
