19 February 2019

Kenyan Accountant Extradited to U.S Over Sh3.6 Billion Fraud

A Kenyan man accused of stealing Sh3.6 billion ($36 million) from an American media technology services company has been extradited from his South American hideout.

Edward Martin Karuku, alias Paul McDaniel 42, was a former accounting manager who has been on the run since 2017.

He was returned to California from Costa Rica on Thursday to face charges of wire fraud.

According to NBC, the accused fled to Costa Rica in early 2017. He is accused of embezzling funds from Hypermedia Systems Inc., a media-technology services firm, prosecutors said.

Prosecutors said that as part of his job, McDaniel was charged with making payments to Hypermedia vendors.

According to the indictment, McDaniel formed a corporation using a name similar to one of Hypermedia's vendors, then directed more than Sh3.6 billion in funds to the shell company and created bogus invoices on letterhead of actual Hypermedia vendors to justify the expenses.

McDaniel allegedly used the stolen funds to pay off Sh2.3 billion in credit card debt, and transferred Sh800 million to his personal bank accounts.

He was arrested in Costa Rica in 2017 and remained in custody there pending extradition to Los Angeles.

He is facing 10 counts of wire fraud, each of which carries up to 20 years in federal prison.

Kenya

MumsVillage Launches MumsVillageShop With a Curated Range of Genuine Local and Global Mum and Baby Brands

MumsVillage, a leading parenting website for expert advice and online community support in Kenya, has announced today… Read more »

See What Everyone is Watching

Copyright © 2019 Nairobi News. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.