Second Suspect Arrested in Multi-Million Dollar Gold Fraud Targeting US Investor

Kenyan authorities have arrested a second suspect in connection with a sophisticated gold fraud that cost an American investor Sh28,109,100 ($217,900), according to the Directorate of Criminal Investigations (DCI). Mohammed Noor Muhyadhin Mohammed, owner of Mohazcom Trading, was taken into custody following an investigation into a scheme involving the non-delivery of 495 kilograms of gold, with funds immediately transferred abroad through a network of companies and financial institutions.

The arrest follows charges brought against Willis Onyango Wasonga, alias Marcus, at Milimani Law Courts on February 16, 2026, for offenses including conspiracy to defraud, obtaining money by false pretences, and possession of proceeds of crime under Kenya's Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). The case highlights Kenya's ongoing battle against sophisticated financial crimes targeting international investors.

Background and Context

Gold fraud schemes have become increasingly prevalent in Kenya, leveraging the country's position as a regional financial hub to attract international investors seeking legitimate deals in precious metals. According to the DCI, these operations typically involve false promises of gold deliveries, with victims' funds quickly moved through multiple accounts and across borders to evade detection. The recent case underscores the challenges faced by Kenyan authorities in combating transnational financial crime while maintaining the country's reputation as a legitimate business destination.

Key Figures and Entities

Court documents and investigative records identify several key players in the fraudulent network. Mohammed Noor Muhyadhin Mohammed operated through his company, Mohazcom Trading, which held an account at the National Bank of Kenya. The disputed funds originated from accounts held by MOAC Advocates at the same bank, suggesting a coordinated effort to create a legitimate paper trail for the transactions. Investigators have also identified connections to a long-established Forex Bureau along Standard Street in Nairobi, whose proprietor allegedly facilitated numerous large cross-border transfers.

The investigation revealed that Mohammed immediately transferred the entire amount to Tecno Mobile Limited accounts at Citibank in Hong Kong, claiming the transaction was intended to finance a mobile phone shipment. According to investigators, no such shipment has arrived in Kenya, indicating the transfer was part of the money laundering operation rather than legitimate business activity.

Legal and Financial Mechanisms

The fraud employed multiple layers of financial deception to obscure the nature and destination of the funds. Investigators discovered that MOAC Advocates presented a debt settlement agreement designed to legitimise the transfer to Mohazcom Trading, but forensic examination revealed the document to be fabricated, specifically created to mask the fraudulent operation. The subsequent rapid transfer to Hong Kong through Citibank demonstrates how criminals exploit international banking systems to move illicit funds across jurisdictions.

Under Kenya's Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), those charged face significant penalties for money laundering offenses, including imprisonment and asset forfeiture. The DCI's investigation shows how legal entities like law firms and trading companies can be misused to create the appearance of legitimate financial transactions, necessitating enhanced due diligence from financial institutions.

International Implications and Policy Response

This case highlights the broader challenges in combating cross-border financial crime, particularly in regions with developing regulatory frameworks. The transfer of funds to Hong Kong demonstrates how fraudsters exploit differences in regulatory regimes and international cooperation mechanisms. Kenyan authorities have emphasized that these investigations are part of a broader campaign to protect the integrity of the country's financial system and maintain investor confidence.

The DCI has stated that perpetrators targeting investors and undermining Kenya's financial integrity will face swift action, signaling increased enforcement of anti-money laundering regulations. However, the case also reveals gaps in international information sharing and the need for stronger coordination between banking regulators across different jurisdictions to detect and prevent similar schemes.

Sources

This report draws on statements and findings from Kenya's Directorate of Criminal Investigations, court filings from Milimani Law Courts, and banking records from financial institutions involved in the transactions. Additional context is provided by Kenya's legal framework, including the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), and official statements from Kenyan law enforcement regarding ongoing investigations into financial fraud.