Nairobi — Businessman Jared Kiasa Otieno has been remanded for seven days to allow detectives from the DCI complete investigations related to alleged fraud and obtaining money by false pretenses.
The prosecution had applied for 14 days, but trial Magistrate Paul Mayova reduced it to half after hearing all parties.
The court heard that between February 8-25, 2019 a foreigner by the name of Sounthorn Chanthvong from Lao who deals with buying and selling gold is said to have been lured into a house located at Kaputei Gardens where he lost USD3,000,000 equivalent to Sh300 million.
The prosecution said that the foreigner was duped that the items he bought were genuine gold.
"On the 13 May 2019 through a tip off to the office of the DCI, officers raided the said house where they arrested 15 people who are believed to be Otieno's employees," the court heard.
The prosecution further said that during the raid several exhibits were recovered and are with investigating officers awaiting analysis, saying that the detectives needs time to peruse them.
The trial Magistrate was told that preliminary investigations reveal that Otieno is involved in the scam, despite the fact that he presented himself to the DCI upon learning through social media that police were looking for him.
The prosecution said that an affidavit sworn by Inspector Felix Karisa Banzi reveals that the respondent is linked to many fraudulent activities relating to fake gold.
The suspect cannot be charged immediately as investigation is still on going, the court was told.
However, in reply to the application seeking detention of the subject his lawyer Stanley Kangai, said that amount was purely genuine transaction which all parties are in agreement.
He said his client is not linked to 15 suspects arrested on May 13, 2019 and have since appeared in court and are in police custody for investigation.
The lawyer submitted that the application before court has a holding charge and therefore its unconstitutional.
He pleaded with the court to release him on bond given that he presented himself to DCI without summons contrary to was carried on social media.