Court Orders The Kenyans Who Swindled US-BasedRelative of Sh16 Million to Refund the Money
A Nairobi court has directed three Kenyans who swindled a relative living in the US of Sh16 million to refund the money.
The three; Amos Kosgey, David Magun, and Collins Saina, are said to have lured the victim, Charles Meto into investing in a holiday home project at the coast as an equity partner in 2010. Meto, a Kenyan based in the US, was promised a 25 percent share of the project worth Sh30 million.
Having lied to Meto that they had acquired a parcel of land in Mtwapa, Kilifi county for the construction of 100 homes, the complainant wired Sh16 million from his account in the US to an account listed under a company called CAD Holdings Limited.
Two years later, Meto traveled to Kenya to monitor the progress of the project but was shocked to learn that the three had not purchased the said land neither had they made their equity contributions towards the scheme.
They had also withdrawn all the cash he sent to the company’s account and shared it among themselves.
The ruling for the case filed in 2014 was issued last Friday by High Court Justice Mary Kasongo, who directed the defendants to repay the money.
“I find that Charles was inconvenienced by the defendants when they put his money to personal use rather than invest it as was originally intended. He has succeeded in his claim and it would follow that he is entitled to the costs of this suit,” ruled Justice Kasango.
The court established that Meto sent the money one month before CAD Holdings Limited was incorporated.
“As of July 19, 2010, CAD Holdings had not been incorporated. If indeed what Amos, David, and Collins were inviting Charles to do was to obtain shareholding in the yet to be incorporated company, then one cannot understand why even after Charles sent money through a third party, Elsie Chemurgor Saina, and later into CAD’s bank account, he was not reflected as director of CAD on the memorandum and articles of association at incorporation,” the judge added.
The three were ordered to reimburse the Sh16 million and an additional Sh1 million for general damages. They will also pay interest accrued over the past 10 years as will be determined by the court.