Two businessmen accused of orchestrating a multi-million Tanzanite mineral fraud scheme have pleaded not guilty to charges of obtaining goods worth Millions by false pretense.
Humphrey Mulindi Mathahana and Steve Ochieng Odhiambo appeared before the Milimani Senior Principal Magistrate Caroline Nyagodhei and pleaded not guilty to charges of conspiracy to defraud and obtaining high-value Tanzanite minerals from a Nairobi based gemstone dealer.
The prosecution alleges that between February 3 and March 5, 2021, the two conspired to defraud Emily Silaton Mututua, a Director of Milestone Gemstone Kenya Limited, by falsely claiming they would sell the precious stones in Dubai.
According to court documents, the suspects fraudulently obtained a total of 1,374 carats of Tanzanite minerals, valued at approximately USD 422,872 (Sh 46.4 million), in three separate transactions.
In the first count, the prosecution claims that the duo unlawfully obtained 687.283 carats worth USD 203,436 (Sh 22.3 million) by misrepresenting their ability to facilitate an overseas sale.
The duo are also alleged that on February 5, 2021, at the Ministry of Mining offices in Nairobi, Mathahana and Odhiambo acquired 456.8 carats of Tanzanite valued at USD 147,553 (Sh 16.2 million) under similar false pretenses.
Additionally, the accused are facing a charge of of fraudulently obtaining 230.483 carats worth USD 71,883 (Sh 7.89 million) on March 5, 2021, also claiming they would secure a buyer in Dubai.
Following their arraignment, the prosecution opposed their release on bond, arguing that the suspects posed a flight risk and could interfere with witnesses. Prosecutors further noted that the accused had evaded previous court summons and failed to cooperate with investigators.
Defense lawyers, however, urged the court to grant their clients bail, insisting that they were willing to comply with all court directives.
The court released the duo on a bond of Sh 5Million or an alternative cashbail of Sh 2 Million.
The matter is to be mentioned on 17th April pending pre trial proceedings.