Court detains two over Sh57.7m fake gold scam targeting US nationals

Kache Mildred alias Sabreena Ayesha and Ahmed Bashar Mohamed, before the Milimani Law Courts in Nairobi, on May 18, 2026. [Nancy Gitonga, Standard]

A Nairobi court has ordered two suspects detained at Kilimani Police Station in connection with Sh57.7 million gold export fraud that allegedly swindled two American nationals.

Milimani Magistrate Geoffrey Onsarigo on Monday, ordered Kache Mildred alias Sabreena Ayesha and Ahmed Bashar Mohamed to remain in police custody until Tuesday, when a Directorate of Criminal Investigations (DCI) application to detain them for 10 more days pending investigations will be heard.

The court heard that investigators are probing offences of obtaining money by false pretences and conspiracy to defraud, after complaints that the suspects posed as legitimate gold dealers capable of exporting large consignments to Dubai.

According to the affidavit by Corporal Dennis Mugambi, the investigating officer, the complainants Terry Lee Schrubb Jnr and Kenneth J. Adler were allegedly defrauded of $447,000 after being convinced the suspects could supply genuine gold consignments for export from Kenya to Dubai.

"The respondents together with other accomplices falsely represented to complainants that they had genuine gold consignments weighing approximately 10 kilograms, 500 kilograms and 700 kilograms available for export," Mugambi stated in his affidavit.

Investigators say the victims were reeled in through a series of fabricated transactions, transferring funds through cryptocurrency wallets for what they were told were documentation fees, insurance premiums, smelting charges, aircraft retention fees and logistics costs.

Payments included $56,000 for smelting charges, $231,000 for insurance, $121,000 for cargo jet services and $11,000 for documentation, none of which yielded a single gram of gold.

Forensic analysis of blockchain records and cryptocurrency wallets, including a Binance account linked to the second suspect Bashar, established the movement of proceeds through multiple digital wallets.

A Cyber Forensic Lab report filed as CFDL 332/2026 further confirmed communication and financial transactions between the first respondent and the complainants.

Investigators also allege forged assay certificates, fabricated insurance documents and false shipment papers were deployed to convince the victims that a legitimate gold deal was underway.

The arrest of Mildred at Crystal Villas in Kilimani was anything but routine.

DCI officers said she locked herself inside House No. 10, refusing to surrender, and remained in active communication with accomplices via mobile phone before attempting to scale the property's perimeter wall. 

She was intercepted before she could flee.

"The first respondent's behaviour during arrest clearly shows that she is a flight risk and there is a likelihood that she may abscond court process if released on police bail before completion of investigations," Corporal Mugambi deponed.

Investigators describe Mildred as the "mastermind and principal coordinator" of the fraudulent scheme.

 Bashar is accused of knowingly receiving funds through his Binance wallet and disbursing them to Mildred and her associates, thereby aiding in laundering the fraudulently acquired money.

The DCI said the suspects had persistently evaded arrest, requiring intelligence from multiple security agencies and extended surveillance before they could be traced and apprehended.

Investigators are still pursuing additional cryptocurrency records, KYC documentation and transaction logs from various platforms, and are actively hunting other accomplices believed to remain at large.

“Their release at this stage shall greatly jeopardize ongoing investigations, interfere with tracing of accomplices and compromise recovery of proceeds of crime," the DCi officer states.

The DCI is also pursuing other suspects believed to be part of the wider syndicate, including one accomplice who reportedly evaded arrest and abandoned a vehicle now held as an exhibit.

When the matter came up in court, the proceedings did not continue after the defence sought more time to review the application filed by the prosecution.

Magistrate Onsarigo allowed the request, stating that the application would be canvassed later.

“The accused persons have sought time to go through the application. The matter will be mentioned tomorrow for further directions,” the court directed.