Court Detains City Lawyer Over Alleged Sh35.7 Million Fake Gold Scam Pending Bail Ruling

Milimani Law Courts Nairobi

A city advocate Alphonce Collins Odoyo Osewe spent the night in custody after he was charged yesterday with multiple counts of allegedly defrauding foreign investors of more than Sh35.7 million in a fake 400-kilogram gold deal.

This is after Milimani Chief Magistrate Gethi Kibiru ordered that Osewe be held at Kilimani Police Station until 9 a.m. today when the court will deliver its ruling on the prosecution's application opposing his release on bond pending trial.

Osewe who appeared pleaded not guilty to several counts, including obtaining money by false pretences, acquisition of proceeds of crime and use of proceeds of crime under the Proceeds of Crime and Anti-Money Laundering Act.

According to the charge sheet, Osewe is charged alongside co-accused Patroba Odhiambo Tobias alias Ishmael are accused of obtaining USD 260,400 (equivalent to Sh35,737,296) from complainant Bernard Shiaunda Aete between May 1 and May 9, 2023, by falsely claiming they were in a position to sell him 400 kilograms of gold bars.

Osewe also faces a separate count of allegedly obtaining Sh26.1 million from another complainant, Adeyeye Enitan Ogunwusi, by falsely representing that he could supply the same quantity of gold.

The prosecution further alleges that the accused subsequently acquired and transacted the funds despite knowing or having reason to believe they constituted proceeds of crime.

After denying the charges, Office of the Director of Public Prosecutions (ODPP) vehemently opposed Osewe's release on bond arguing that he had previously absconded court proceedings after being released on police cash bail.

In an affidavit sworn by the investigating officer Corporal Dennis Mugambi the prosecution told the court that Osewe was arrested in August 2025 and released on Sh50,000 police cash bail pending recommendation from the ODPP.

The officer stated that after charges were approved, Osewe was informed of the date he was required to appear in court but allegedly failed to attend plea-taking despite being aware of the proceedings.

The prosecution further claimed that investigators repeatedly contacted and summoned him to attend court, but he ignored the summons, prompting the court to issue warrants for his arrest.

According to the affidavit, Osewe allegedly remained at large for nearly a year before detectives arrested him on August 4, 2026, during the arraignment of Mukurweini MP John Kaguchia at the court’s precincts.

The investigating officer argued that the advocate's conduct demonstrated that he was a flight risk.

"The conduct of the accused person in accepting police cash bail and thereafter absconding court proceedings for nearly one year demonstrates a deliberate intention to evade the due process of the law and clearly establishes that he is a flight risk," the affidavit states.

The prosecution also informed the court that investigators had visited lawyer Osewe's last known residence but were told he had relocated to an unknown destination.

"The accused person's unknown permanent place of abode, coupled with his previous conduct of absconding court proceedings, presents a substantial risk that, if admitted to bond, he will once again abscond and frustrate the hearing and determination of this case," the investigating officer deposed.

However, the defence strongly opposed the prosecution's application, insisting there were no compelling reasons to deny the advocate bail.

Defence lawyer told the court that Osewe is an advocate of the High Court of Kenya and an officer of the court who understands and respects court processes.

"The accused person herein is an advocate of the High Court of Kenya and an officer of this court. He is much aware of the decorum that ought to be respected," he submitted.

The defence maintained that Osewe had consistently cooperated with investigators after his arrest and had faithfully reported to the Directorate of Criminal Investigations while out on police cash bail.

Counsel further argued that Osewe travelled to India twice for specialised medical treatment after his health deteriorated and denied claims that he deliberately absconded court.

The defence also disputed allegations that his whereabouts were unknown, telling the court that Osewe has lived at the same residence since 2017 and was arrested within court precincts while undertaking his duties as an advocate.

He further argued that no summons had ever been personally served upon his client and noted that previous counsel had attended court mentions on his behalf.

After hearing submissions from both sides, Magistrate Kibiru directed that Osewe remain in custody at Kilimani Police Station pending today's ruling on whether he will be released on bond as the criminal case proceeds.