Kenyan Fake Gold Dealer Arraigned for Defrauding Australian of Sh78 Million

A Nairobi man accused of orchestrating an elaborate fake gold fraud stood before Milimani Law Courts last week, answering for a scheme that allegedly stripped an Australian investor of USD 600,000, roughly Sh78 million, through a transaction routed via a law firm whose principal remains at large.

Duncan Okaka Okonji, described by investigators as a Kenyan fake gold merchant, was arrested on March 24 and arraigned the following day. He faced a single charge: conspiracy to defraud, contrary to Section 317 of the Penal Code. He denied it. The court released him on a bond of Sh5 million, with an alternative cash bail of Sh1 million and the requirement of two contact persons. The case returns to Milimani for a mention on April 7.

The alleged scheme began in October 2025, when the Australian complainant was introduced to Okonji by someone presenting himself as an American investor. What followed was a confidence operation built on physical theatre: a purported deal involving a 590 kg gold consignment and staged visits to supposed mining sites. Believing the transaction to be legitimate, the complainant transferred USD 600,000 through Conrad Law Advocates LLC before later suspecting fraud and reporting the matter to the Directorate of Criminal Investigations.

The law firm has become a central thread in the investigation. The lawyer associated with Conrad Law Advocates LLC is yet to be found and has been mentioned in a number of similar schemes. Neither the firm nor the absent lawyer has offered public comment.

The DCI issued direct public warnings following the arraignment. "Director DCI Mohammed Amin implored on members of the public to remain alert when engaging in the so called gold bussiness as it has been established that fake gold merchants are once again trying to establish their foothold in the capital city." A separate advisory put the stakes plainly: "Businesspersons are reminded to be wary of rings of organized fraudsters who sit in opulence, grabbing every slight opportunity to gain from the toil and sweat of genuine traders."

The Okonji case is the latest in a series of police operations that have resulted in dozens of arrests of fake gold dealers across Kenya. Cases involving foreign victims are rising, with investigators noting that schemes pairing Kenyan operators with foreign intermediaries are growing more sophisticated. The DCI's position leaves little ambiguity: "The Directorate of Criminal Investigations has reiterated its commitment to dismantling transnational fraud syndicates, disrupting organised investment scams, and ensuring that proceeds of crime are identified, traced, and recovered in accordance with the law.