Three family members have been sentenced to 10 years in prison by a Kisumu court for their involvement in a Ksh113.2 million fraud scheme targeting Such Enterprises Limited.
The Director of Public Prosecutions (DPP) secured the the convictions against Christopher Joseph Okal, his brother Vincent Anyumba and their mother, Grace Minayo Okal, after the court found them guilty of money laundering, acquiring and possessing proceeds of crime, and other offences.
The three have beenconvicted by the Kisumu Magistrate’s Court for money laundering contrary to Section 3(a), (b), (i), (ii) and (iii), as read with Section 16(1)(a) of the Proceeds of Crime and Anti-Money Laundering Act.
Senior Principal Magistrate Fatuma Rashid found the three guilty of all six counts as charged by the Prosecution led by Deputy Director of Public Prosecutions Daniel Karuri and Principal Prosecution Counsel Douglas Moseti.
Further, Christopher Joseph Okal, his brother Vincent Anyumba, and their mother Grace Minayo Okal were also sentenced to 10 years in prison for the acquisition and possession of proceeds of crime contrary to Section 4(a)(b)(c), read with Section 16(1)(a) of the same Act.
The three were also sentenced to a further five years in prison each for conspiracy to commit a felony contrary to Section 393 of the Penal Code over a fraudulent scheme involving Ksh. 113.2 million belonging to Kisumu-based Such Enterprises Limited.
Okal who worked as an accountant at Such Enterprises Limited faced an additional 5-year sentence for stealing by servant contrary to Section 281 and fraudulent false accounting contrary to Section 330(b), and stealing contrary to Section 275 as read with Section 268 of the Penal Code.
Okal and Anyumba were each also sentenced to 3 years in prison for stealing contrary to Section 275 as read with Section 268 of the Penal Code.
The charges arose from fraudulent diversion of customer payments and wholesale goods worth Sh113.2 million from Such Enterprises Limited in Kisumu on diverse dates between October 2020 and July 2021.
Prosecution told the court that the three knowingly engaged in transactions involving money and property obtained from the theft, with the intention of concealing or disguising its source or ownership.
Having denied the charges facing them, Prosecution called witnesses, including company employees, customers, bank officials, forensic examiners and investigating officers, to reveal to the court how the convicts operated their fraud scheme.
The court heard that Okal manipulated the company’s accounting system by creating fictitious transactions and diverting customer payments to accounts linked to his co-convicts. Evidence presented by Prosecution including forensic document investigation showed that Okal used his access privileges to alter records and conceal transactions.
Similarly, an audit report identified Ksh. 113,227,529 that had not been accounted for. The court heard that customers had been instructed to deposit money for goods into bank and mobile money accounts associated with the convicts rather than the company’s official accounts.
The court rejected the convicts’ assertion that the transactions were legitimate business arrangements, finding that the Prosecution evidence demonstrated a coordinated scheme to defraud the company and conceal the proceeds.
Rashid said she was persuaded by prosecution that Okal was the mastermind of the convicts’ fraud plan who in an attempt to hide the trail of the monies from the customers, availed the accounts of Okal and Anyumba where the sales were deposited.
In his sentencing remarks, Karuri asked the court to sentence the convicts to at least 10 years for stealing and participating in money-laundering activities linked to the diverted payments.
Weighing the evidence produced by the Prosecution against the defense, Rashid found the Prosecution had proved their case against the three on all the counts. Consequently, she proceeded to convict and sentence them pursuant to Section 215 of the Criminal Procedure Code.
The terms will run concurrently. The convicts have fourteen (14) days within which to appeal both the conviction and the sentence.
