A notorious fraudster, Steve Odek, also known by the alias David Bett, was arrested by detectives from the Directorate of Criminal Investigations (DCI) for allegedly scamming a foreign national of Sh33 million through a fake gold deal. Odek is accused of orchestrating a sophisticated scam involving more than 500 kilograms of counterfeit gold, leaving the victim with substantial financial losses.
Arrest and Charges
The arrest took place after a thorough investigation by the DCI’s Operations Support Unit, which tracked down Odek for his involvement in the fraudulent transaction. According to DCI officials, Odek lured the victim into two separate agreements under the pretense of selling gold. The first deal was signed on February 6, 2024, in which Odek allegedly offered 500 kilograms of gold at a price of Sh5 million per kilogram. Just over a month later, on March 14, 2024, Odek entered into a second agreement for another 580 kilograms of gold, under the same terms.
Despite the initial agreement, Odek failed to deliver on his promises, and instead, he continued to deceive the victim by offering false guarantees. According to the DCI’s statement, the victim was unaware that he was being defrauded, having made payments through two law firms, Owano and Associates Advocates, and Alata and Co. Advocates.
The False Promises and Deceptive Collateral
Following the failure of the first deal, Odek continued the scam by persuading the victim to enter into a second agreement, which he claimed would be fulfilled only after certain conditions were met. These conditions included the buyer’s responsibility for chartering a jet, paying taxes, and covering insurance costs. Despite these hefty demands, Odek assured the victim that the gold would be delivered upon meeting the stipulated conditions.
In a bid to further convince the victim of his legitimacy, Odek provided 20 kilograms of ‘gold bars’ as collateral. These bars were reportedly stored in a vault at MySafe Vault. The victim, believing in the authenticity of the bars, continued with the transaction, unaware that he was being deceived. The situation worsened as Odek successfully manipulated the victim into paying a total of Sh33 million in exchange for the supposed gold.
However, Odek’s scam did not end with the initial payment. He attempted to further defraud the victim by requesting an additional Sh24 million, which he claimed was needed to finalize the deal. It was only at this stage that the victim began to grow suspicious of the ongoing situation and decided to report the matter to the authorities.
The Discovery of Fake Gold
Upon receiving the police report, DCI detectives launched a comprehensive investigation into the scam. One of the key developments in the case was the analysis of the 20 kilograms of ‘gold’ that Odek had used as collateral. The detectives seized the gold bars and subjected them to a thorough examination. The results were shocking: the bars were made of copper, zinc, and tin, with no trace of actual gold. The scam, which had been carefully designed to deceive the victim, was now exposed.
The investigation also revealed that Odek had misled the victim by falsely claiming to be running a legitimate gold trading business. It was further uncovered that the company associated with Odek, PCL Natural Resources Limited, was not licensed by the Ministry of Mining to deal with gold or any other precious metals. This crucial information allowed the detectives to pinpoint Odek’s fraudulent activities and connect him to a larger web of deceit.
Odek’s Arrest and Legal Proceedings
With this significant breakthrough in the investigation, detectives were able to locate and arrest Odek. He was taken into custody for further questioning, and the process of preparing his arraignment began immediately. The DCI confirmed that Odek’s arrest marked a pivotal moment in the investigation, which is expected to lead to additional charges and legal actions.
The DCI’s statement emphasized that Odek’s arrest highlights the ongoing efforts by law enforcement agencies to combat fraudulent activities in the country, particularly in industries involving high-value commodities such as gold. The investigation is still ongoing, and more information is expected to surface as authorities continue to probe Odek’s business dealings and possible accomplices.
The Impact of the Scam on the Victim
The victim of Odek’s fraudulent activities, a foreign national whose identity has not been revealed, is left with substantial financial losses. The Sh33 million that was paid to Odek was part of a larger sum, as Odek’s attempts to extort an additional Sh24 million were also part of his elaborate scheme. While the victim has not publicly commented on the incident, the case highlights the vulnerability of international investors who may not be familiar with the local business environment.
Gold trading, particularly in countries like Kenya, has seen an uptick in recent years, with many individuals and companies seeking to profit from the high demand for the precious metal. However, the growing interest in gold has also led to an increase in scams and fraudulent activities, as unscrupulous individuals take advantage of unsuspecting buyers.
The case has also drawn attention to the importance of ensuring that businesses involved in the trade of precious metals are properly licensed and regulated. In this instance, Odek’s company, PCL Natural Resources Limited, was found to be operating without the necessary licenses from the Ministry of Mining, further complicating the legal ramifications of the case.
Efforts to Combat Gold Scams
The case has raised awareness about the prevalence of gold scams in the region, with authorities urging both local and foreign investors to exercise caution when engaging in gold transactions. In particular, the DCI has stressed the importance of verifying the legitimacy of businesses and individuals before entering into any agreements involving precious metals.
The DCI has also called for greater vigilance among legal professionals, as the two law firms involved in facilitating Odek’s scam — Owano and Associates Advocates and Alata and Co. Advocates — may come under scrutiny for their role in the deal. Investigators are likely to examine the extent to which these law firms were aware of the fraudulent nature of the transactions and whether they took any steps to protect their client from being defrauded.
In response to the growing number of scams in the gold industry, the Ministry of Mining has pledged to take stronger measures to regulate and oversee the trade of precious metals. The ministry has stated that it will continue to crack down on illegal gold trading and ensure that only licensed companies are allowed to engage in such transactions.
Conclusion: A Cautionary Tale for Gold Investors
The arrest of Steve Odek serves as a cautionary tale for both local and international investors in the gold market. It highlights the risks associated with unregulated gold trading and underscores the need for vigilance when dealing with high-value assets. The authorities’ swift action in apprehending Odek demonstrates a commitment to combating fraud in the precious metals market, but it also serves as a reminder that due diligence is crucial when engaging in any business transaction, particularly in industries where the stakes are high.
As investigations into the case continue, the public is urged to report any suspicious gold transactions to the relevant authorities to help prevent further scams and fraudulent activities in the sector.
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