Three family members, Christopher Joseph Okal, his brother Vincent Anyumba, and their mother Grace Minayo Okal, have been sentenced to 10 years in prison each for defrauding a Kisumu-based company, Such Enterprises Limited, of KSh113.2 million. The convictions and sentences were secured by the Director of Public Prosecutions (DPP) before the Kisumu Magistrate's Court. Senior Principal Magistrate Hon. Fatuma Rashid found the three guilty of all six counts of money laundering as charged by the prosecution.
The charges arose from a fraudulent scheme involving the diversion of customer payments and wholesale goods worth KSh113,227,529 from the company between October 2020 and July 2021. Christopher Okal, who worked as an accountant at Such Enterprises Limited, manipulated the company's accounting system by creating fictitious transactions and diverting customer payments into bank and mobile money accounts linked to his co-accused.
Forensic document examination established that Christopher Okal used his access privileges to alter records and conceal transactions. An audit report also identified KSh113,227,529 that had not been accounted for. Customers were allegedly instructed to deposit payments for goods into accounts associated with the three convicts instead of the company's official accounts.
The prosecution, led by Deputy Director of Public Prosecutions Daniel Karuri and Principal Prosecution Counsel Douglas Moseti, presented witnesses, including company employees, customers, bank officials, forensic examiners, and investigating officers. The court rejected the defence's argument that the transactions were legitimate business arrangements, finding that the evidence demonstrated a coordinated scheme to defraud the company and conceal the proceeds.
In her ruling, Hon. Rashid described Christopher Okal as the mastermind of the fraud, saying he used accounts belonging to his mother and brother to conceal the trail of money diverted from customers. The magistrate found that the prosecution had proved its case against all three accused persons and convicted them under Section 215 of the Criminal Procedure Code.
The convicts were each sentenced to 10 years in prison for money laundering and a further 10 years for acquiring and possessing proceeds of crime, contrary to the Proceeds of Crime and Anti-Money Laundering Act. They were also handed an additional five-year sentence each for conspiracy to commit a felony under Section 393 of the Penal Code. Christopher Okal received additional five-year sentences for stealing by servant and fraudulent false accounting, while his mother and brother were each sentenced to three years for stealing.
The sentences will run concurrently, and the convicts have 14 days to appeal against both their convictions and sentences. The Kenyan courts have demonstrated their commitment to combating financial crimes, and this case serves as a warning to those who engage in fraudulent activities. The DPP's office has been working tirelessly to secure convictions in cases of financial crimes, and this case is a testament to their efforts.
Key points
- Three family members sentenced to 10 years in prison each for defrauding a Kisumu-based company of KSh113.2 million.
- The convictions and sentences were secured by the Director of Public Prosecutions (DPP) before the Kisumu Magistrate's Court.
- The sentences will run concurrently, and the convicts have 14 days to appeal against both their convictions and sentences.
