Nairobi — Detectives from Kenya’s Directorate of Criminal Investigations (DCI) have arrested a second suspect in a high-stakes money laundering probe linked to a gold scam that allegedly defrauded an American national of USD 217,900. The arrest marks a significant escalation in investigations into a scheme authorities say promised glittering gold returns but delivered nothing more than dust.
The suspect, identified as Mohammed Noor Muhyadhin Mohammed, was apprehended by sleuths from the elite Operation Support Unit (OSU). According to investigators, Mohammed is the sole proprietor of Mohazcom Trading, a registered Kenyan business that deals in mobile phones primarily sourced from Tecno Mobile Limited in Hong Kong. Authorities allege that his company account was used to receive and swiftly transfer funds suspected to be proceeds of crime.
Arrest Follows Court Arraignment of First Suspect
Mohammed’s arrest comes days after the arraignment of Willis Onyango Wasonga, also known as Marcus, who appeared before the Milimani Law Courts on February 16, 2026. Wasonga faces multiple charges, including conspiracy to defraud, obtaining money by false pretences, acquisition of proceeds of crime, possession of proceeds of crime, and use of proceeds of crime under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) No. 9 of 2009.
Prosecutors allege that Wasonga played a central role in orchestrating the fraudulent gold transaction that targeted a foreign investor. The scheme reportedly involved promises of delivering 495 kilograms of gold — a deal that never materialized.
How the Money Moved
According to investigators, on February 3, 2026, Mohammed received a swift transfer of USD 217,900 into Mohazcom Trading’s account at the National Bank of Kenya. The funds were debited from accounts belonging to MOAC Advocates, also held at the same bank. Authorities believe the money was purportedly payment for the non-existent gold shipment.
Detectives say that shortly after the funds landed in the company account, Mohammed wired the entire amount overseas to accounts held by Tecno Mobile Limited at Citibank in Hong Kong. The transfer was allegedly meant to facilitate a new shipment of mobile phones that has yet to arrive in Kenya.
Investigators are now scrutinizing whether the rapid overseas transfer was designed to obscure the money trail and complicate recovery efforts. Financial crime experts note that such swift cross-border transactions are often a hallmark of laundering schemes intended to layer and distance illicit funds from their original source.
Forex Bureau Under Investigation
Further investigations have uncovered that Mohammed has maintained a business relationship spanning more than a decade with a forex bureau located along Standard Street in Nairobi. Detectives believe the forex bureau may have played a critical role in facilitating substantial cross-border transfers, including the transaction now under scrutiny.
Authorities allege that the bureau routinely handled large sums linked to Mohammed’s business dealings and may have assisted in converting and moving funds internationally. The proprietor of the forex bureau is now under investigation as detectives work to establish whether due diligence procedures were followed or deliberately circumvented.
Alleged Cover-Up Attempt
In what investigators describe as an attempt to legitimize the suspicious transfer, MOAC Advocates reportedly presented a debt settlement agreement allegedly signed by Mohammed and another suspect who remains at large. However, detectives say the document appears to have been crafted as a smokescreen to sanitize what they believe was a fraudulent enterprise.
Authorities claim the agreement was designed to create the appearance of a legitimate financial obligation rather than proceeds from a gold scam. Forensic document examiners and financial analysts are now reviewing the paperwork as part of the broader probe.
Suspect in Custody, More Arrests Expected
Mohammed is currently in custody undergoing processing pending arraignment. Law enforcement sources indicate that investigators are actively pursuing three additional suspects believed to be connected to the scheme.
The DCI has reiterated its commitment to dismantling networks involved in gold scams, which have repeatedly targeted both local and international investors. Kenya has faced growing scrutiny in recent years over fraudulent gold deals that lure victims with promises of high-value shipments, only for the transactions to collapse after funds are transferred.
Crackdown on Gold Scams and Money Laundering
Authorities say this latest arrest underscores the DCI’s determination to combat money laundering and restore confidence in Kenya’s business environment. Gold scams have become increasingly sophisticated, often involving forged documents, shell companies, professional intermediaries, and complex financial transactions designed to evade detection.
Financial crimes investigators emphasize that money laundering typically involves three stages: placement, layering, and integration. In this case, detectives are examining whether the swift movement of funds from a local bank account to overseas accounts constitutes layering — a method used to obscure the origin of illicit proceeds.
Legal experts note that under POCAMLA, individuals found guilty of acquiring, possessing, or using proceeds of crime face severe penalties, including lengthy prison sentences and asset forfeiture.
Protecting Investors and National Reputation
The DCI has urged investors to exercise due diligence when engaging in gold transactions and to verify the legitimacy of companies and intermediaries before transferring large sums of money. Authorities also warn that international fraud cases can damage the country’s reputation and discourage legitimate foreign investment.
As the investigation unfolds, detectives are expected to widen the probe to determine whether the suspects are linked to a broader criminal network operating beyond Kenya’s borders.
For now, Mohammed Noor Muhyadhin Mohammed remains behind bars as the legal process begins. With additional suspects still at large and financial trails under forensic review, this case could reveal deeper layers of a scheme that authorities say sought to exploit trust, manipulate financial systems, and tarnish Kenya’s business credibility.
The coming days will likely see more court appearances, additional charges, and potentially further arrests as investigators tighten the net around those allegedly involved in one of the latest high-profile gold scam and money laundering cases to hit Nairobi.
