Third suspect charged in Sh100 million fraud and money laundering scheme

Kahawa Law Courts. [Wilberforce Okwiri,Standard]

A third suspect linked to an alleged elaborate fraud and money-laundering ring involving more than USD 800,000 (Sh103 million) has been charged at the Kahawa Law Courts, deepening a case that prosecutors say was executed through a well-coordinated criminal network spanning several months.

Lawyer Stephen Juma Ndeda was on Monday arraigned before Senior Principal Magistrate Richard Koech, where he faced five counts ranging from conspiracy to defraud to engaging in organised criminal activities.

He, however, pleaded not guilty to all charges.

The arrest of Ndeda and the other suspects followed months of investigations by detectives from the Directorate of Criminal Investigations (DCI).

The probe was triggered by a complaint filed by American investor Blake Charles Stringer, who told investigators he had been defrauded while seeking a USD 500 million loan to finance agricultural projects in Africa.

After being introduced to a firm known as Affluent Wealth Management, Stringer travelled to Nairobi, where he signed loan documents and was subsequently directed to pay over USD 800,000 allegedly for insurance and processing fees.

The payments, according to investigators, were made through various entities and individuals, including Toureg Insurance and two other companies but despite repeated assurances and the substantial sums sent, Stringer never received the loan.

According to the charge sheet, Ndeda is accused of conspiring with others not before court to defraud Nutra-Acres LLC of USD 800,000 between June 2024 and February 4, 2025.

Prosecutors told the court that the accused allegedly posed as a facilitator of a non-existent USD 500 million loan, convincing the complainant to release significant sums in the process.

In the second count, Ndeda, described in court as a director of Toureg Insurance Agency Limited, was charged with obtaining USD 56,400 (Sh7.2 million) from the firm on January 14, 2025, allegedly while masquerading as someone capable of arranging the massive loan package.

The prosecution said he committed the offence jointly with others while fully aware that the representations made were false.

The suspect also faced a separate charge of money laundering under the Proceeds of Crime and Anti-Money Laundering Act.

The court heard that between June 2024 and February 2025, Ndeda transferred and withdrew the USD 56,400 (Sh7.2 million) in a manner intended to conceal the source, movement, and nature of the funds, money which he allegedly knew formed part of the proceeds of crime.

Further, the prosecution said the suspect participated in organised criminal activities within Nairobi County during the same period.

Ndeda, it was alleged, knowingly worked within a criminal network to facilitate laundering of proceeds, with the aim of obtaining a financial benefit amounting to USD 800,000 belonging to the complainant company.

In the fifth count, he was accused of acquisition of proceeds of crime after allegedly receiving USD 56,400 at Ecobank Kenya Ltd from Nutra-Acres LLC’s account as payment for an “engagement contract,” while knowing the funds were illicit.

After the charges were read out, Ndeda, through his lawyer, asked the court to review the bail terms.