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Nyakundi Exclusive: FULL INVESTIGATIVE REPORT ON INTERNATIONAL FRAUD & GOLD SMUGGLING CARTEL

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INVESTIGATIVE REPORT

FULL INVESTIGATIVE REPORT INTERNATIONAL FRAUD & GOLD SMUGGLING CARTEL

Kenya, Tanzania, Democratic Republic of Congo & Portugal

Document Prepared For

Kenya Central Investigations Department

Document Prepared By

Joint Task Force for Anti & Counter Corruption

Document Date

29 May 2017

This document has been prepared for Kenya’s Criminal Investigations Department (CID). This document represents the full-scope of our findings including incidents that occurred both inside and outside of Kenya, as it describes an international cartel, and that it is the stated function of the CID to undertake investigations on serious crimes including money laundering, economic crimes, and organized crimes.

The parties involved in the conspiracy have been alleged by the United Nations Monitoring Agency, UNMONUSCO, through the actions of gold-smuggling and fraud, to have assisted in the funding of insurgency in the Democratic Republic of Congo.

The purpose of this document is to assist Government Regulatory Authorities and Law Enforcement in the investigation of a large-scale fraud and gold-smuggling cartel operating in East Africa.

The contents of this document are sensitive and pertain to alleged criminal activities in the following countries: Kenya, Tanzania, Portugal and the Democratic Republic of Congo.

Founded in 2015, as a non-governmental organization, the Joint Task Force for Anti & Counter Corruption (JTACC) assists Governments and Private Sector to deal with corruption, fraud and money laundering. The organization has a strong-focus on transnational organized crime, assisting in the coordination of investigations or litigations across multiple jurisdictions.

JTACC stands out as a leader in the field, as both an implementation partner and an advisory. Within months of being established, JTACC represented transnational cases and investigations with a value exceeding US$70 million dollars.

JTACC has consistently demonstrated its ability to identify, seize and repatriate assets from bank accounts to fixed assets that evaded detection by other organizations.

JTACC has successfully built cases against ‘politically exposed persons’, in corrupt environments, where the individuals have formerly had effective ‘political immunity’ to prosecution for over a decade. Many of these countries are non-English speaking with legal systems not based on Western Law.

In August 2015, JTACC became an official advisory organization to the Government of the Islamic Republic of Afghanistan, assisting the Minister of Finance in the development of anti- corruption initiatives. JTACC’s relationship with the Government has continued and expanded, with JTACC providing assessment and advisory to the Attorney General’s Office.

Spelling or grammatical errors in file names, direct quotations from individuals, or email correspondence have been preserved as they were expressed by the original owner of the statement or files.

    • BASIC SUMMARY OF INCIDENT

In 2015, a transnational criminal syndicate operating in Tanzania and Kenya and beyond, used gold smuggled from the DRC to pull off a sophisticated ‘scam’ designed to defraud the Mauritius based investment fund, OHR Strategic Investments and OHR Partners, collectively referred to herein as “OHR”. The fraud resulted in a financial loss for OHR that exceeds US$7.0 million.

Operating in Tanzania and Kenya, the syndicate employed a non-delivery scam as their method of defrauding OHR. The non-delivery scam is reliant on the presentation of problems to a buyer that are preventing delivery of the product, and that such problems can be solved by spending more money. Funds requested by the syndicate were for alleged payment- purposes including but not limited to: insurance, transport, taxes or government fees related to the gold.

To facilitate their scam, the syndicate used existing companies and business professionals to create the superficial appearance of a legal and industry-compliant export operation. The illusion of legitimacy was created using a large collection of forged or fraudulent documents related to the valuation, transportation, insurance, sale and export of the gold.

A more detailed summary of the scam follows this section to provide context for how the suspected insurance fraud fits into a vast, ongoing fraud scheme that spans multiple continents. The insurance aspect is an important component of the wider criminal activities as the companies and fraudulent paperwork related to this element of the operations helped lend the illusion of legitimacy to the gold transaction and enabled a false sense of security for the client OHR, ultimately facilitating the furtherance of the fraud.

Jared “Smith Mackenzie” Otieno

Recent Kenyan news articles corroborate our claims regarding the far-reaching extent and sophistication of this deep-rooted criminal network and its activities. Media reports and police investigation have newly exposed the fraudulent schemes of Kenyan businessman Jared “Smith Mackenzie” Otieno, a person of interest in our investigation who is noted later in the section ‘Detailed Summary of Incident.’ Many of Mr. Otieno’s scam methods and complicit companies detailed in the news articles are identical to the ones involved in our investigation. These discoveries related to his activities in Kenya, greater Africa, the Middle East, and beyond confirm the alarming scope of the criminal network associated with the suspicious events, companies, and individuals in Tanzania.

    • DETAILED SUMMARY OF INCIDENT

In early 2015 OHR were introduced by Joao Paulo Matos Palma, a Portuguese national, to Hugo Filipe Timoteo Inacio, also a Portuguese national and the CEO of Matcheasy Lda, for the purchase of gold from Africa.

It is important to note that in a separate transaction that utilized a similar non-delivery scam, OHR had lost significant monies of USD $1,028,000.00 directly with Joao Palma, except in this prior occasion the scam was operated from Guinea and Sierra Leone. Joao Palma operated under the company Caan Resources SA Guinea and is also believed to be associated with Dream Metal Sierra Leone SA Ltd. Whereas, the events described in this transaction take place predominantly in Tanzania and Kenya.

The operation of the fraud in Tanzania and Kenya clearly meets the criteria of a cartel, as the entities behave as though they are organizationally connected. The definition of a cartel being: group of individuals and organizations that cooperate to control a product or unite in a common purpose.

The connection and use of the same operating procedures by the fraudulent group introduced by Joao Palma and the second group by Hugo Timoteo, provide reasonable merit to believe that this Cartel and organization span many African territories. This scenario becomes more concerning to Governments and other agencies, when coupled with allegations that the gold originating from the Democratic Republic of Congo (DRC) is being used to finance insurgencies.

The transaction can be divided into five phases, with each phase representing an effort by OHR to export the gold, and is usually accompanied by the introduction of a new company or participant from East Africa who offers to facilitate the export and compliance and receives advance fees for the service.

      • Phase One: May 2015 to June 09 2015
      • Phase Two: June 09 2015 to July 30 2015
      • Phase Three: August 2015 to September 2015
      • Phase Four: October 2015 to December 2015
      • Phase Five: January 2016 to March 2016

Phase One: May 2015 to June 09 2015

On 26th May 2015, Matcheasy Lda, a Portuguese company, signed a contract to purchase Tanzanian gold from companies Evermetals Co. Ltd and Delicore Metals Co. Ltd. The contract established the initial purchase amount to be 500 kg of gold, which would increase to the amount of 1000 kg per month for 36 months. On the same day of 26th May 2015, Matcheasy Lda then re-branded the same contract, in effect acting as a reseller, and signed the agreement with OHR, who served as the end-buyer for the gold.

Between the 27th of May 2015 and 9th June 2015, OHR paid US$453,625.00 to Hugo Filipe Timoteo Inacio (Hugo Timoteo) and his company Matcheasy Lda. From these monies,

$320,400 are accounted for in invoices from Delicore Metals that Hugo Timoteo presented to OHR for payment. Mr. Timoteo’s provided statement from I&M bank on the 10th of June 2015 shows the receipt of funds, and that the funds are debited from the account in ‘cash’ transactions. During this period, OHR were provided a variety of documents alleged by Matcheasy Lda, Delicore Metals and Evermetals to have been issued by departments of the Tanzanian Government including but not limited to the Tanzanian Revenue Authority, the Southern African Development Community, and the Tanzanian Ministry of Energy and Minerals.

These documents were ultimately designed to create the illusion that the necessary export requirements had been fulfilled for an initial shipment of 200 kg of gold and that the ownership of the gold transferred to OHR. During the investigation process, JTACC consulted with the authorities that were alleged to have issued these documents and determined the documents to be fake.

The 200 kg of gold were claimed by Delicore Metals, Evermetals and Matcheasy Lda to have been exported by air through the freight company Swissport Aircargo on June 09th 2015. The documents provided pertaining to the freight of the gold have since been confirmed as fake by Swissport, including the Airway Bill and the accompanying documentation.

Phase Two: June 09 2015 to July 31 2015

OHR was informed that that the goods on their way to Singapore had instead been returned from Dubai. It was alleged that customs inspection had identified the goods as originating from the Democratic Republic of Congo (DRC), and they had been seized at the airport in Kenya. These events as described to OHR were a fabrication.

Christian Sailie Richard informed OHR that they had to pay US$500,000 in fines to the Kenyan Government and obtain a non-criminality certificate from UNMONUSCO, a monitoring agency for minerals from the DRC. In support of his claim, Christian Sailie Richard provided several letters alleged to have been issued from UNMONUSCO, the first of which was allegedly addressed to ‘Yahmed Forwarders,’ an export and logistics firm, on the 20th of June 2015. This document purported to be signed by Charlotte Cook of UNMONUSCO. JTACC has liaised directly with Charlotte Cook in 2016, and has confirmed with her that this and the other two letters claiming to be issued from UNMONUSCO in this period are also fake.

The second forged letter, also issued on the 20th of June 2015 and alleged to be issued from Rashid Patrick Mbuya, UNMONUSCO’s Minerals Watch Head of Operations, describes the requirement for the non-criminality certificate for US$494,000 dollars with fines of US$6,000.

Following these letters, Christian Sailie Richard claimed to have held a meeting at UNMONUSCO on the 30th of June 2015, and he provided OHR with a recording of the meeting.

The third forged letter, dated the 30th of June 2015, also alleged to be from UNMONUSCO and written to the Kenya Revenue Authority, describes the meeting on the 30th of June 2015, and mentions that the client “intends to complete payment to the customs by Friday 03rd of July 2015.”

On the 02nd of July 2015, of his own volition and without direction from OHR, Christian Sailie Richard entered a loan agreement with Unicredit Microfinance for US$505,000, purporting to use 200 kg of gold as collateral, and to require the money to pay the supposed penalties to the Kenyan Government. The payment receipts and other documentation claimed to be from the Kenyan Revenue Authority alleged to pertain to these fees and fines have also been determined as fake.

While full payment for the Unicredit loan was still pending, there was a transitional period over a few days for releasing the 200 kg gold. On the 27th of July, Unicredit entered an Escrow Agreement with Advanced Security and OHR, allowing Advanced to immediately take possession of the goods. On that same day, Advanced claimed in their scope of work document to have transferred and guarded the goods while SEAMIC performed a purity analysis on the gold.

On the 28th of July 2015, OHR had completed payments of US$650,000 paid to Unicredit Microfinance in two tranches for the release of the gold. The first payment of US$550,000 was made through CRB Legal Africa and the remaining US$100,000 was paid directly by bank transfer to Unicredit Microfinance.

Phase Three: August 2015 to September 2015

The third phase of the transaction commenced with the release of the 200 kg of gold, as notified to OHR by Unicredit Microfinance in writing on the 28th of July. The released gold was allegedly transferred to the safe-guard of Advanced Security Co. Ltd and East Gate Relocation Services, companies that were introduced to OHR by a consultant and U.S. citizen and resident of Thailand, Mr. William Fantozzi.

Mr. William Fantozzi had in the interim been hired by OHR as a consultant to coordinate the export of the gold and was responsible for security, due diligence and documentation management. In this role, he operated heavily through the third, fourth and fifth phases.

During these three phases, OHR paid US$1,082,600.00 to his bank account. These monies were requested as operational funds and consultancy fees. Since such time, it has been shown that Mr. William Fantozzi failed to make the associated payments to third-party contractors and has been accused by UNMONUSCO of collaborating with Cartel Members to inflate invoice amounts, with the difference in these amounts being paid to him.

This transfer of goods has a documented interaction between Christian Sailie Richard and Advanced Security Co. Ltd. Whether this is an indication of conspiracy between the two parties is unknown, but there are indicators of wrongdoing at the time of handover, with regards to false documentation provided.

Both William Fantozzi and Geoffrey Yeri of Advanced Security were known to UNMONUSCO and under observation. Both were regarded as suspicious, with the following description made via email correspondence on the 21st of March 2016:

“Our investigations have been leading to a certain GEOFFREY YERI, a Tanzanian citizen, who pretends to have big political connections in Tanzania. We have reasons to believe that the guy in [sic] the mastermind behind the whole scam. We are also working on a lead that the above mentioned have been orchestrating the scam in collaboration with one side of the consignee, living in Thailand. The name is Bill.”

01st August 2015 – Advanced Security Co Ltd issued a ‘Scope of Work’ document. The ‘Scope of Work’ contains an index of the documents supplied with the transaction, which is comprised of the forged documents including the forged certificates of origin, receipts, and airway bills.

Within this document, it is stated on the last page that ‘Advanced Security Co. Ltd’ conducted due diligence on the documentation, an excerpt of which is provided below:

DOCUMENT VERIFICATIONS

Due diligence of the documentations was conducted for authentication of documents document [sic] submitted by seller to the security company.

FINDINGS

Advanced Security was able to establish the compliance of export permit that confirms and recommend the payments of 4% statutory payments for Government royalties at the declared and assessed value of the product currently at the safe custody with Advanced Security.

This relates to the “Original Exporting Documents: Annexure 1” which then contains a complete index of the documents provided by Delicore Metals and Evermetals. These documents have since been shown to be universally forgeries and fakes.

04th August 2015 – Advanced Security Co. Ltd issued a ‘Royalty Cheque Receipt’ for US$272,000 allegedly paid to Evermetals that corresponds to a line item on the Advanced Security Co. Ltd issued to OHR on the 03rd of August 2015.

13th August 2015 – Advanced Security Co Ltd issued a receipt for a “Safe Keeping Record’ for 350 kg of gold, with the depositors listed as ‘Evermetals Co. Ltd’ and ‘OHR Strategic Investment Fund’. This now brings the total amount of gold in the transaction to 550 kg.

14th August 2015 – Advanced Security Co. Ltd issued an invoice for US$808,000.00 for the 350 kg of gold. This invoice was not paid by OHR; these fees were ultimately paid to ‘East African Cargo Handlers’ in October 2016 (Phase 4) for the export of the gold.

26th August 2015 – Tanzanian company Adex Mining Company Ltd. emerged as another logistics company involved in facilitating the export of the gold, presumably as a subcontractor for Advanced Security Co Ltd. Adex issued two invoices dated 26th August 2015.

The ‘200 KG Gold Bar Fee Note’ totals US$420,000, which includes costs related to the police and general papers/diplomatic bag/agent fees. The ‘350 KG Gold Bar Fee Note’ totals US$1,020,500.00, which includes costs related to government royalties, insurance, licenses, export papers, certificate or origin, smelting, and agent fees. Adex never invoiced OHR directly. Rather, many of the exact same line item charges from Adex’s invoices appear on Advanced Security’s 14th August 2015 invoice mentioned above, which was ultimately paid by OHR to ‘East African Cargo Handlers’ (Phase 4).

31st of August 2015 – East Gate Relocation Services issued an invoice for US$270,500.00 in relation to the 350 kg parcel of gold, which clearly states that ‘smelting’ will take place (at Advanced). East Gate Relocation Services was established through the individual Geoffrey Yeri, who is also associated with Advanced Security Co. Ltd.

Phase 4: October 2015 – December 2015

In the fourth phase of the transaction in October 2015, East African Cargo Handlers, a Kenyan Company, was introduced into the transaction to facilitate the export of the gold and submitted a quote / invoice for US$1,833,550.00 that was paid into an escrow conducted by the law firm Okundi & Company Advocates.

East African Cargo Handlers, represented by Kenyan national Jared Otieno, has been shown to have issued fraudulent documents related to this invoice, including but not limited to Government Royalties, Aircraft Charter, Insurance and UN Minerals Clearance Export. Otieno is also reported to use a variety of aliases: Craig Smith, Smith Mackenzie, Jared Kiasa Otieno, and Mr. Smith.

On the 10th of October 2015, to provide security assistance for the export of the gold, William Fantozzi appointed the U.S. security firm, Advanced Security Services Evaluation & Training (ASSET). ASSET security arrived in Nairobi on the 14th  of October 2015, and were instructed by Mr. Fantozzi to meet “Craig Smith” on the 15th of October. In a statement made by Scott Whitaker of ASSET security, the use of aliases by Mr. Jared Otieno became

apparent, and is supported by the submitted paperwork:

“Once we met with Mr. Smith, he immediately told us his name was not Craig, it was Jared. He explained that Kenyans typically had several names they went by due to tribal affiliations. All of the paperwork he showed us listed his name as Smith Mackenzie. We thought this was odd to have so many names in use and we told Mr. Fantozzi this. However Mr. Fantozzi said it was common and for us not to worry about it. Mr.

Mackenzie ensured us that he has high level government connections and that he could straighten out this paperwork mistake quickly…”

“… During this time Mr. Mackenzie told us that Smith Mackenzie is his professional name but his friendly name was Jared Otieno. My partner and I found this very strange so upon our return we googled Jared Otieno and found several news articles and pictures that showed it was indeed him and everything we found listed him as Jared Otieno. We noticed his Porsche had Jared K. Otieno inscribed on his running board of the door jams. We again informed Mr. Fantozzi of this and he didn’t seem to care about any of these findings as long as we got the gold out.”

Jared Otieno, per Whitaker’s statement, made multiple excuses for the delays with the export of the gold. On the 21st of October, Whitaker stated that Otieno informed him that the duties and taxes had not been paid for the gold, and that US$1.8m would need to be paid to rectify the situation.

This timeline becomes interesting because there are two important documents dated during this period related to the US$1.8m invoice and payment. The first invoice was issued attention to “Bill Fantoz,” otherwise known as William Fantozzi, on the 12th of October 2015, for US$1,833,550 and the second invoice was for US$1,653,550 dated on the 15th of October 2015. The final amount requested from OHR was matched to the 12th of October invoice, but shows that William Fantozzi (Bill Fantoz) was likely aware of the US$1.8m that was required to be paid 9 days before Jared Otieno informed ASSET of the problem with the duties and taxes.

OHR agreed to make the payment. The SWIFT transaction copy from OHR’s account on the 21st of October 2015 for US$1,833,550 to the escrow account of Okundi and Company Advocates, demonstrates that such an amount was paid. Further, the entire funds were

released to Jared Otieno on the 26th of October 2015, from the escrow at the offices of Okundi and Company Advocates, under witness and signature of ASSET employees Scott Whitaker and Zevon Durham, as well as signed acknowledgement by Jared Otieno himself.

The invoice for the US$1,833,550 was issued on a letterhead for ‘HiSpeed Freight Services,’ which also in the same document referenced ‘East African Value Cargo Handlers’, while having the signature block for Smith Mackenzie. It is noted that an earlier version of this invoice existed with the amount of U$1,633,550, and this is one of the invoices that we believe to have been padded in-collusion with Mr. William Fantozzi. This allegation was made originally by UNMONUSCO.

Shortly after the disbursement of monies to Jared Otieno, Mr. Scott Whitaker stated that he was handed documents alleged to be from the Kenya Revenue Authority, including receipts that indicated the fees had been paid, and that the product had been cleared for export.

JTACC submitted these documents for verification to the Kenya Revenue Authority, who immediately determined them as fraudulent.

Other documents submitted by Jared Otieno, including a United Nations Simplified Compliance Certificate, have been shown to be tampered documents. The ‘Consignment Tracking Number: 191937’ is a legitimate number, but it is not attributed to East African Cargo Handlers and belongs to another party.

Given the earlier usage of the UNMONUSCO Offices by Christian Sailie Richard, and that Jared Otieno could acquire a legitimate tracking number, may be an indication of a link between these two branches of the Cartel.

Jared Otieno did not export any gold to OHR and is not believed to have undertaken any of the actions for which he was paid the amount of US $1,833,550.00. Furthermore, the documentation provided by Jared Otieno has been shown to be fake and/or forged.

In email correspondence with JTACC in 2016, UNMONUSCO, the Minerals Watch Authority, noted that Jared Kiasa Otieno is a known gold smuggler that they have encountered on numerous occasions.

On the 01st of November, the ASSET security consultants were ready to fly out of Nairobi with the gold on a leased G650 Aircraft. However, that evening they were informed by Jared Otieno that the aircraft had been recalled for maintenance. We have since evaluated the

leasing documents for the airplane, and have found the air charter documents to be false. We confirmed that the specific airplane with the tail-number ZK-KFB has never been to Africa.

On the 3rd of November, Mr. Scott Whitaker was informed that the gold had been stolen by the Congolese Mafia, and that they would have to negotiate the release of the gold from the Mafia.

A new security consultant, Mr. George Whitfield, deployed to Nairobi to take over the matter from ASSET security. During the handover, Mr. George Whitfield, on examination of the documents, informed Mr. Scott Whitaker that the transaction was a scam and that the documents were fake. Together, Mr. Scott Whitaker and Mr. George Whitfield informed Mr. William Fantozzi that the documents were fake.

In Mr. Scott Whitaker’s statement, he says that at the direction of Mr. William Fantozzi, he and Mr. George Whitfield met with the Congolose Mafia representative, Mr. Joseph Balangoy Guy, whose name as per passport is Guy Joseph Mangala Balangoy.

Per Mr. Scott Whitaker’s statement, Mr. Joseph Balangoy Guy provided them with a term- sheet requesting US$5.2 million dollars among other concessions to facilitate the release of the gold.

Mr. Jared Otieno claimed to Mr. Scott Whitaker that he did not know Mr. Joseph Balangoy Guy. However in the days following, while Mr. Scott Whitaker was at Mr. Jared Otieno’s house, he saw the same term-sheet with a signature block ‘Smith Mackenzie’, one of Otieno’s aliases. This is a strong indicator of collusion between Mr. Otieno and Mr. Joseph Balangoy Guy, even beyond the widespread frauds and artificial delays through which to claim more money from OHR. Mr. Scott Whitaker informed Mr. William Fantozzi of the discovery, but Mr. William Fantozzi did not report this to OHR, and thereby allowed the costs and expenditures to continue into December 2015.

In correspondence with JTACC on the 09th of May 2016 related to his Statement, Mr. Scott Whitaker elaborated on the above, commenting that:

“This is when we knew for sure that Jared Otieno and the Congolese were in cohoots [sic] together and told Mr. Fantozzi this and gave him proof!”

Recent Kenyan news articles and local police investigations have revealed Jared Otieno to be involved in a separate but similar fraudulent gold scheme. Many of Mr. Otieno’s scam methods and complicit companies detailed in the reports are identical to the ones involved in this investigation. Included in this packet are print copies of the 26 Feb 2017 Nairobi News article “‘Businessman’ Who Held Lavish Wedding Now Linked to Mega-Fraud,” and 27 Feb 2017 ghalfla! online post “Jared Otieno the filthy rich Luo man who bought a 30M car and spent 15M on hi pre-wedding is an international thief.” Police are reportedly searching for Otieno.

The possibility of Mr. William Fantozzi being a co-conspirator with the Cartel has not been discounted. He certainly derived significant financial gain by allowing the project to proceed when he had clear evidence that a fraud was being carried out, and he is alleged by UNMONUSCO to have colluded on the alteration of invoices with the Cartel to receive further payment.

OHR continued to make further efforts to export the 550 kg of gold in December 2015, with another US$300,000 payment to East Gate Relocation Services for ‘Asset Relocation and Logistics’ on the 07th of December 2015.

It is unclear from the evidence as to how Mr. William Fantozzi and Mr. Geoffrey Yeri planned to achieve this, given the alleged status of the gold being held by the Congolese Mafia. Any such plans submitted were either the object of fantasy or a concerted and deliberate effort to draw monies from OHR for consultancy, as it was well-known by Mr. William Fantozzi by this point that the entire transaction was a fraud.

At the end of 2015, OHR ceased efforts to export the gold through third-parties and filed civil proceedings against Christian Sailie Richard and Evermetals in the High Court of Tanzania, where OHR was informed the gold had allegedly been transferred following a seizure by a “task force”.

Phase 5: January 2016 to March 2016

On the 08th February 2016, the High Court of Tanzania issued an ex-parte order in favour of OHR to block the sale or transfer of the gold by Evermetals Co. Ltd to any other party.

Although OHR’s proceedings for the injunction of the gold were successful, with MONUSCO having confirmed the gold as originating from the DRC, OHR did not interfere or appeal a repatriation of the gold to the DRC and actively sought to assist MONUSCO’s investigation.

DOCUMENTARY EVIDENCE

The evidence, documentation, and exhibits in support of this ‘Incident Summary’ and the remainder of the investigation report are provided with this document in Appendices A and B as well as in digital format on an included USB drive.

  • SUMMARY OF PARTICIPANT COMPANIES

The following companies are parties of interest to the investigation of fraud and criminality in Kenya, Tanzania and Portugal involving smuggled gold and ‘advanced fee frauds’ as well as the suspected insurance fraud that was a component of the larger scheme.

Company Name

Registration Number

Country

Delicore Metals Co. Ltd

109426

Tanzania

Evermetals Co. Ltd

93151

Tanzania

Metalore Co. Ltd

102365

Tanzania

Advanced Security Co. Ltd

95408

Tanzania

Adex Mining Company

110231

Tanzania

East Gate Relocation Services

NA

Tanzania

East African (Value) Cargo Handlers

NA

Kenya

Matcheasy Lda

510219977

Portugal

    • Exhibits: Corporate Documents
      • Copy of Corporate Documents: Delicore Metals Company Limited
      • Copy of Corporate Information (BRELA): Evermetals Company Limited
      • Copy of Corporate Documents: Metalore Group Limited
      • Copy of Corporate Information (BRELA): Advanced Security Company Limited
      • Copy of Corporate Documents: Adex Mining Company Limited
      • Information not available (BRELA): East Gate Relocation Services
      • Copy of Corporate Documents: East African (Value) Cargo Handlers
      • Copy of Corporate Documents: Matcheasy Lda
      • Delicore Metals Company Limited

Incorporated in July 2014, Delicore Metals Company Limited has per the provided BRELA records, not filed their ‘Annual Return,’ as requested on the 28th September 2016.

It is also worth noting that the individuals listed as Company Secretary and Directors on the BRELA document (Juma Said Matimbwa, Benjamin Alex Matiku, and Obby John Kinyaki

respectively), neither appear nor are they mentioned during the entire gold scheme, though Martin Lindazi and Christian Richard claim to be affiliated with the company in their different roles.

      • Evermetals Company Limited

Incorporated in August 2012, Evermetals Company Limited has per the provided BRELA records, not filed their ‘Annual Return,’ as requested on the 26th June 2016.

      • Advanced Security Company Limited

Incorporated in August 2012, Advanced Security Company Limited has per the provided BRELA records, not filed their ‘Annual Return’, as requested on the 26th June 2016.

      • Adex Mining Company Limited

Adex Mining Company was incorporated in 2014 and assigned Dealer Licence number 00000464 on the 12th of August 2014 according to official documents. However, on a 10th September 2015 Adex shipping invoice submitted to OHR, Adex lists its dealer licence number as 00000545. According to the 2015 records of the Tanzania Ministry of Energy and Minerals’ registered dealers, Adex Mining Company Limited was not named as a licensed dealer, and the licence number 00000545 was assigned to a gems trading company.

      • East Gate Relocation Services

Despite several requests for information from BRELA regarding this company, we were informed that the organization was handled by another Government Department. No information was forthcoming on this department.

      • East African Cargo Handlers

The only document able to be sourced for East African (Value) Cargo Handlers is a Certificate of Incorporation that cites Daniel Ndegwa Kang’ara as the owner of the company. There were no payments made to a bank account for East African Value Cargo Handlers. All payments made to Jared Otieno were made at the offices of ‘Okundi & Company Advocates’ in Kenya as cash transactions from an escrow account. Daniel Ndegwa Kang’ara is not known to have appeared within the transaction. It is also noted that, Jared Otieno mostly used the variation of the company name, “East African Cargo Handlers,” and only once did he refer to “East African Value Cargo Handlers,” which was cited under his signature on a version of a Hispeed Freight Services invoice.

Matcheasy Lda contractually represented itself as a reseller for the ‘gold’ on behalf of the seller-party, Evermetals Co. Ltd, Delicore Metals Co. Ltd and Metalore International Group Limited. Matcheasy Lda received payments from the OHR Strategic Investment Fund, corresponding to invoices issued from Delicore Metals Co. Ltd.

Matcheasy Lda’s CEO is Mr. Hugo Timoteo, who received two payments related to insurance fees into a domestic Tanzanian account on the 05th and 09th of June 2015.

KENYA

This section of the report pertains to the incidents that occurred in the country of Kenya related to the actions of the suspected cartel members. The main areas of focus are: Transactions, Insurance Fraud, Forgery of Documents from the Kenya Revenue Authority, and Export Documents.

  • OVERVIEW: KENYA & GOLD SMUGGLING CARTEL

Kenya was an important territory for the operation of the gold-smuggling cartel. Documentation alleged to have originated from the Kenya Revenue Authority and from the United Nations Office were instrumental in “Phase Two” of the Cartel’s fraud.

With the introduction of Jared Otieno into the proceedings in October 2015, Kenya again became a center-point for the operation of the fraud, with US$1,833,550.00 paid to Jared Otieno from an escrow account managed by Okundi & Company Advocates, a Kenyan Law Firm. Otieno’s documents used to claim the amount of US$1,833,550.00 have been shown to be fraudulent. It is worth noting that Jared Otieno also used a similar forged UN Simplified Clearance form to those used by Christian Sailie Richard. Otieno’s document used the Consignment Track No: 191937 and was issued in the name of East African Cargo Handlers.

    • Christian Sailie Richard & Fraud in Kenya

Christian Sailie Richard, a Tanzanian National, was the focal point of the cartel’s activities in Kenya during this period. It was Christian Sailie Richard who claimed that the initial 200 KG shipment of gold was embargoed due to the alleged origin of the gold from the Democratic Republic of Congo. Christian Sailie Richard provided supporting documentation for this claim that have been demonstrated as forged documents. These include forgeries of letters from the United Nations Mission in the Democratic Republic of Congo, and documents from the Kenya Revenue Authority.

Christian Sailie Richard alleges to have held a meeting at the United Nation’s Office in Nairobi on the 30th of June 2015. He provided photographs of his visit and a recording of a meeting with an unnamed party that is claimed to be a UN representative. The UN Office, through contact with Charlotte Cook, has confirmed that the documents provided by Christian Sailie Richard were fake.

Christian Sailie Richard provided OHR with a letter alleged to be from UNMONUSCO’s Mineral Watch division and issued by Rashid Patrick Mbuya, which stated that an amount of US$500,000 was required to be paid to the Kenya Revenue Authority. On the 30th of June 2015, a second letter was issued that discusses the meeting held at the UN Offices, and ostensibly offers an extension of the deadline for the payment of the US$500,000 until the 03rd of July 2015.

OHR were provided with copies of payment receipts claimed by Christian Sailie Richard to have come from the Kenya Revenue Authority. JTACC has also confirmed these as forgeries in consultation with the Kenya Revenue Authority.

These documents were affirmed as fakes by Jeremiah Kavoi, Assistant Manager of Finance for Nairobi Customs Station JKIA, and Catherine M. Mule, Customs and Border Control, on the 02nd of March 2016.

Christian Sailie Richard also provided a “UN Simplified Compliance Certificate” with the number 190891 which was assigned to “Delicore Metals” and allegedly issued by Rashid Patrick Mbuya. This document has also shown to be false. The certificate number was valid but assigned to another party.

When OHR was not forthcoming with the US$500,000, Christian Sailie Richard claimed to have taken a loan from Unicredit Microfinance in Tanzania on a short-term basis to pay for the fines. Christian Sailie Richard was ultimately successful in getting OHR to make the payment to Unicredit Microfinance, for an amount ultimately much greater than the loaned sum.

      • Key Events: Christian Sailie Richard in Kenya

Date

Event

20-Jun-15

UNMONUSCO Letter to Yahmed Forwarders

20-Jun-15

UNMONUSCO Letter to Kenya Revenue Authority

30-Jun-15

UNMONUSCO Letter to Kenya Customs

30-Jun-15

Alleged Meeting at UNMONUSCO Offices

      • Confirmation of the Fraud

JTACC submitted scanned copies of the letters from UNMONUSCO to Charlotte Cook via email and was informed that the documents were forgeries. On the 20th of March 2016, Charlotte Cook confirmed that the following documents are “all imitations and forgeries.”

        • UN Simplified Compliance Certificate 191937
        • UN Simplified Compliance Certificate 190891
        • Letter UNMON15/NCR/0737
        • Letter UNMON15/NR/0782
      • Exhibits: Fraud Related to Christian Sailie Richard
  • 20th June 2015 – UNMONUSCO Letter to Yahmed Forwarders
  • 20th  June 2015 – UNMONUSCO Letter to Kenya Customs
  • 30th  June 2015 – UNMONUSCO Letter to Kenya Customs
  • 30th June 2015 – Photographs of Christian Sailie Richard at the UN Offices in Nairobi
  • UN Simplified Compliance Certificate 190891
  • UNMONUSCO Meeting notes provided by Christian Sailie Richard
  • Audio recording of alleged meeting provided by Christian Sailie Richard (on USB stick only)
  • Copies of email correspondence between JTACC & Charlotte Cook
  • Copies of email correspondence between JTACC & Kenya Revenue Authority
    • Jared Otieno & Gold Fraud in Kenya

In October 2015, East African Cargo Handlers, as represented by Jared Otieno, was introduced into the transaction. Jared Otieno used multiple aliases during this phase. He was originally introduced as Craig Smith, then later referred to himself as Smith Mackenzie, and then finally Jared Otieno. Jared Otieno also issued invoices and quotations under the company name of “HiSpeed Freight Services”. It is unknown if this is a legitimate company.

East African Cargo Handlers quoted OHR the amount of US$1,833,550.00 for the following services and fees (not limited to):

      • Government Royalties
      • Aircraft Charter
      • Insurance
      • UN Minerals Clearance Export

Otieno received OHR’s payment of US$1,833,550.00 through an escrow account under the management of Okundi & Company Advocates in Kenya, which is discussed in further detail in section 3.4.3 Release of Funds via Escrow Account.

      • The Fraud & Confirmation of Fraud

JTACC has consulted the respective parties involved in the alleged issuance of the documents by Jared Otieno and has affirmed these as fake:

        • United Nations Simplified Compliance Certificate

The United Nations Simplified Compliance Certificate No. 191937 issued to East African Cargo Handlers was determined to be fake document by UNMONUSCO in consultation with Charlotte Cook.

        • Kenya Revenue Authority Receipt & Invoice for 550KG of Gold

On the 26th of October 2015, Jared Otieno provided a receipt for insurance from the Kenya Revenue Authority for US$305,250.00. This receipt for payment has been verified as fake by Jeremiah Kavoi, Assistant Manager of Finance for Nairobi Customs Station JKIA, and Catherine Mule, Customs and Border Control Department on March 2, 2016.

        • Kenya Revenue Authority Receipt & Invoice: Non-Criminality Clearance

On the 26th of October 2015, Jared Otieno provided a receipt for insurance from the Kenya Revenue Authority for US$124,700 for non-criminality clearance. This receipt for payment has been verified as fake by Jeremiah Kavoi, Assistant Manager of Finance for Nairobi Customs Station JKIA, and Catherine Mule, Customs and Border Control Department on March 2, 2016.

        • Torque Aviation Invoice / Quotation

On the 26th of October 2015, Jared Otieno provided a quotation for the hire of a Gulfstream G650 aircraft for US$265,000 from Torque Aviation, an alleged Kenyan airline charter firm. The document purports to be issued by a Mr. Michael Lovery. The client is listed as Mr. Smith, which is similar to Jared Otieno’s known aliases, of Craig Smith and Smith Mackenzie. The listed amount on the “Torque Aviation” invoice and receipt for Aircraft Hire was US$265,000.00, which correlates to the invoice for US$265,000 from Hi-Speed Freight Services.

JTACC located the owner of the plane with the tail-number ZK-KFB, ExecuJet, a New Zealand based company. ExecuJet’s Charter Sales Manager Roxanne Pace stated unequivocally, “Sorry but our aircraft was not ever in Africa.”

        • East African Community Customs Management: Transit Re-Export

On the 28th of October, Jared Otieno provided a transit re-export in the name of East African Cargo Handlers LTD, a document allegedly issued from the East African Community Customs Management. This document has also been confirmed as fake by Richard Owora Othieno at the East African Community on October 5, 2016.

        • East African Community Customs Kenya: Certificate of Origin

On the 28th of October, Jared Otieno provided a certificate of origin document, with the reference number 6595/798894/15, in the name of East African Cargo Handlers LTD, a document allegedly issued from the East African Community Customs Kenya. This document has also been confirmed as a fake by Richard Owora Othieno at the East African Community on October 5, 2016.

        • East African Community Customs Kenya: Mineral Export Permit

On the 28th of October, Jared Otieno provided a mineral export permit, with the permit number EAC/15/179871/2015, in the name of East African Cargo Handlers LTD, a document allegedly issued from the East African Community Customs Management. This document has also been confirmed as a fake by Richard Owora Othieno at the East African Community on October 5, 2016.

        • East African Community Customs Management: Change of Ownership

On the 28th of October, Jared Otieno provided a change of ownership document, with the reference number 2475748/944894/85, in the name of East African Cargo Handlers LTD, a document allegedly issued from the East African Community Customs Management. This document has also been confirmed as a fake by Richard Owora Othieno at the East African Community on October 5, 2016.

      • Exhibits
        • Jared Otieno Passport Copy
        • Invoice from HiSpeed Freight Services Ltd, $1,833,550.00
        • UN Simplified Compliance Certificate 191937
        • Kenya Revenue Authority Receipt: US$305,250.00
        • Kenya Revenue Authority Receipt: US$124,700.00
        • Email Correspondence with Kenya Revenue Authority
        • Torque Aviation Quotation / Invoice
        • Email Correspondence with ExecuJet
        • East African Community Customs Management: Transit Re-Export
        • East African Community Customs Kenya: Certificate of Origin
        • East African Community Customs Kenya: Mineral Export Permit
        • East African Community Customs Kenya: Change of Ownership
        • Email Correspondence with East African Community

William Fantozzi was ostensibly employed as a ‘Security Consultant’ to oversee Asset Security and other subcontractors to resolve the issues with the export of the gold that OHR had faced.

It was implied by UNMONUSCO that William Fantozzi had collaborated with cartel members to increase their invoices and that he received payment from the cartel.

In the statement from Scott Whitaker, William Fantozzi is said to have been informed about the discovery of duplicate documents for the same gold transaction in a property owned by Jared Otieno. Mr. William Fantozzi did not escalate these concerns to OHR’s management and allowed the transaction to proceed, for which he further benefitted from payments from OHR for his services that amounted to US$1,082,600.00. Likewise, the concerns of Mr.

George Whitfield, another security contractor who indicated from the documents and his own examination of the transaction that it was a fraud, were not escalated to OHR’s Senior Management by William Fantozzi.

The relevant statement from Scott Whitaker has been extracted below verbatim:

“A few days later I was present at a meeting where they left me unattended and I was able to look around the apartment we were at. I discovered the exact same term sheet in Mr.

Otieno’s apartment (to include spelling errors) but this document had a signature block with Smith Mackenzie’s name on it. I showed this document to Mr. Whitfield and Mr. Fantozzi.

Mr. Whitfield, along with other information learned by his team, concluded for certain that this was a fraud and instructed me to leave Kenya and they he would straighten things up with Mr. Fantozzi. I departed Kenya on 12 November without Mr. Fantozzi’s knowledge and have not received a large portion of my payment that Mr. Fantozzi had agreed to.”

Payment to East African Cargo Handlers, as billed on behalf of HiSpeed Freight Services, was ultimately paid in cash to CEO Jared Otieno. The financial disbursement was managed and overseen by the Kenyan law firm Okundi & Company Advocates.

      • Table of Payments: East African Cargo Handlers

Invoice Date

Billing Company

Beneficiary

Invoice Total

12 Oct 2015

HiSpeed Freight Services Ltd

East African Cargo Handlers / Jared Otieno

$1,833,550.00

      • Exhibits: East African Cargo Handlers/ HiSpeed Freight Services
        • East African Cargo Handlers Payment Records

a.) 21 / Oct / 2015 Copy. SWIFT Payment Record. US$1,833,550.00

        • East African Cargo Handlers/ HiSpeed Freight Services Invoices

In total, three versions of HiSpeed Freight Services invoices were forwarded to OHR by consultant William Fantozzi. This corroborates the statement mentioned earlier in this report that Mr. Fantozzi is suspected to have been collaborating with Cartel Members to inflate invoice amounts, with the difference in these amounts being paid to him.

a) 12 Oct 2015 Email Invoice $1,538,550.00

Email correspondence from William Fantozzi to OHR contains one version of a HiSpeed Freight Services invoice typed out in the body of his email.

b) 12 Oct 2015 Invoice $1,833,550.00

This second version of an invoice from HiSpeed Freight Services Limited contained some line items varying in price from the first version, causing the invoice total to be significantly more expensive. This version names “Smith Mackenzie,” an alias of Jared Otieno, as CEO of HiSpeed Freight Services Limited. OHR paid the balance of this invoice version.

c) 15 Oct 2015 Invoice $1,653,550.00

A third version of an invoice from HiSpeed Freight Services with additional variations in line item fees. This copy misspells “Limmited” on the document banner

and watermark. It also includes the company name “East African Value Cargo Handlers” beneath CEO “Smith Mackenzie’s” signature block, as well as different bank account information for payment transfer.

      • Release of Funds via Escrow Account

Jared Otieno used Kenyan law firm Okundi & Company Advocates to create an Escrow account and manage a disbursement agreement through which Otieno would receive payment in cash from OHR for the alleged export fees totalling $1,833,550.00.

Okundi & Co. Advocates drafted the Escrow Agreement signed on 21 October 2015 by Principal Partner Tom Okundi and Scott Whitaker of ASSET Security, an on-site contractor acting as a representative on behalf of OHR.

The release of funds was carried out at the offices of Okundi & Company Advocates on the 26th of October 2015 in two disbursements for the following amounts: US$1,322,750.00 and US$510,800.00. This was witnessed by Scott Whitaker and Zevon Durham, both U.S. Security Contractors from the firm ASSET Security: http://assetsecurityservices.com/

Scott Whitaker provided a detailed statement regarding his encounters with Mr. Jared Otieno, and an overview of the transaction that states for the record the aliases used by Jared Otieno, as well as indicators that Jared Otieno was conducting other similar transactions.

His account was described in the report section ‘1.1 Detailed Summary of Incident.’ According to Scott Whitaker’s biography on his website, he served as a Counter Terrorism Special Agent for the Department of Home Land Security, and as the Assistant Federal Security Director for Law Enforcement (West Coast).

        • Exhibits: Escrow Payment Disbursement

A copy of the signed agreement between OHR Partners, represented by contractor Scott Whitaker, and Okundi & Company Advocates.

          • Variation to Escrow Agreement

A copy of the document signed on 26 October 2015 by OHR representative Scott Whitaker, and Okundi & Co. Principal Partner Tom Okundi.

          • Payment Disbursement Acknowledgement

Receipts of acknowledgement of funds signed by Jared Otieno, witnesses Scott Whitaker and his fellow colleague Zevon Lee Durham, as well as officiator Tom Okundi. Receipts were signed according to two disbursements of US$1,322,750.00 and US$510,800, for a total of US$1,833,550.00.

          • Statement by Scott Whitaker
    • Kenya Insurance Fraud: Overview

Insurance fraud was a feature of the Kenya gold transaction. OHR, as the buyer, was requested to make an insurance payment for the movement of the gold in Kenya, and thus paid for what it believed was a legitimate insurance policy.

The companies and policy that were provided to OHR have shown to be fraudulent through review by the Kenya Insurance Regulatory Authority.

      • Details of Kenyan Insurance Fees and Payments
        • Table of Insurance-Related Invoices

The following Kenyan insurance-related invoices were submitted to OHR Strategic Investment Fund by the Kenyan company HiSpeed Freight Services via OHR consultant William Fantozzi.

Invoice Date

Billing Company

Insurance Line Item

Amount

Related Policy

Invoice Total

12 Oct 2015

HiSpeed Freight Services Ltd

$305,250.00

Global Insurance Agencies Ltd, No: 85191

$1,538,550.00

12 Oct 2015

HiSpeed Freight Services Ltd

$305,250.00

Global Insurance Agencies Ltd, No: 85191

$1,833,550.00

15 Oct 2015

HiSpeed Freight Services Ltd

$305,250.00

Global Insurance Agencies Ltd, No:

85191

$1,653,550.00

        • Table of Insurance-Related Payments

OHR made a payment in accordance with a 12 Oct 2015 invoice via SWIFT for what it believed was a legitimate insurance policy.

Payment Date

Payment Beneficiary

Insurance Line Item Amount

Related Policy

Invoice Total

21 Oct 2015

Okundi and Company Advocates

$305,250.00

Global Insurance Agencies Ltd, No: 85191

$1,833,550.00

        • Exhibits: Insurance Payment Record

a.) 21 / Oct / 2015 Copy SWIFT Payment Record US$1,833,550.00

Payment from sender OHR to receiver Okundi & Advocates escrow account, for ultimate beneficiary Jared Otieno, in accordance with alleged insurance fees charged by HiSpeed Freight Services.

      • Kenya Insurance Documentation

The following insurance documentation was supplied to OHR Investment Fund by Kenyan insurance companies, or individuals and businesses associated with the Seller Party who are suspected of being involved in the smuggled gold scheme and insurance fraud.

        • Exhibit: Global Insurance Agencies LTD / Anto Insurance Brokers LTD Insurance Policy Cover Note No: 85191

Issue Date: 28 October 2015 Policy No: OIC/WIB/15/87945/15

Cargo Insured: 350 kg AU Gold bars, 200 kg AU Gold nuggets Sum Insured: $305,250.00

Issued To: East African Cargo Handlers LTD Name of Insured: OSIF LTD

Note: This insurance policy cover note contains a stamp at the bottom of the page identifying Anto Insurance Brokers LTD. Also, the insured party OSIF LTD is OHR.

      • Verification of the Insurance Fraud

During the investigation, JTACC contacted the Kenya Insurance Regulatory Authority to verify the legitimacy of the insurance companies and the documents allegedly issued by them.

On 18 February 2016, JTACC contacted KIRA via phone and email, with supporting documents, to inquire if Global Insurance Agencies LTD and Anto Insurance Brokers LTD were registered with KIRA.

On 4 March 2015, KIRA representative Michael Mwangangi confirmed that the companies were not registered with the Authority.

Considering the feedback provided by KIRA and other information (or lack thereof) discovered about the companies during this investigation, it is likely that neither Global Insurance Agencies LTD nor Anto Insurance Brokers LTD are legitimate businesses, and it is possible that they do not exist. The insurance paperwork may have been falsified with the assistance or knowledge of Jared Otieno or East African Cargo Handlers LTD, whose company name appears on the document.

        • Exhibits: Global Insurance Agencies/ Anto Insurance Brokers Verification – Email Correspondence
          • Email “Re: Investigation (KE): Anto Insurance Brokers”

An email chain between a JTACC investigator and KIRA representative Michael Mwangangi, who verified that neither Global Insurance Agencies nor Anto Insurance Brokers were registered with the Insurance Regulatory Authority.

Digital File Name: Email – Re_Investigation KE_Anto Insurance Brokers Attachments: Email Attachment – Global Insurance Agencies Policy Cover Note

TANZANIA

This section of the report pertains to the incidents that occurred in the country of Tanzania related to the actions of the suspected cartel members. The main areas of focus are: Financial Transactions, Insurance Fraud, Forgery of Documents from the Tanzanian Revenue Authority, and Export Documents.

    • Tanzanian Cartel: Transactional Structure

The following diagrams describe the payment structure used by the Cartel. Mr. Hugo Timoteo was used as a ‘bagman’ for the Cartel, requesting payment based on invoices from Delicore Metals Co. Ltd. Delicore Metals and Evermetals are in this respect a kind of ‘Ultimate Beneficiary Owner’.

      • Diagram of Hugo Timoteo Payment Structure & Financial Behaviour
      • Diagram of Christian Sailie Richard Payment Structure
    • Table of Payments: Matcheasy Lda

The following payments were made via SWIFT from the OHR Strategic Investment Fund.

Date

Beneficiary

Amount

Sender

27th May 2015

Matcheasy Lda

$119,900.00

OHR Partners

05th Jun 2015

Hugo Filipe Timoteo Inacio

$113,625.00

OHR Partners

09th Jun 2015

Hugo Filipe Timoteo Inacio

$340,000.00

OHR Partners

      • Matcheasy Lda Exhibits
        • Matcheasy Lda Payment Records

a) 27 / May / 2015

Copy. SWIFT Record.

US$119,900.00

b) 05 / Jun / 2015

Copy. SWIFT Record.

US$113,625.00

c) 09 / Jun / 2015

Copy. SWIFT Record.

US$340,000.00

d) 10 / Jun / 2015

I&M Bank Statement

        • Matcheasy Lda Invoices & Receipts

a) 05 / Jun / 2015

Copy. Invoice.

US$113,625.00

b) 05 / Jun / 2015

Copy. Receipt.

US$113,625.00

c) 09 / Jun / 2015

Copy. Invoice.

US$320,400.00

d) 09 / Jun / 2015

Copy. Receipt.

US$320,400.00

e) 10 / Jun / 2015

Copy. Receipt.

US$13,000.00

        • Matcheasy Lda Email Correspondence
          • Hugo Timoteo to CEO of OHR: 05 / Jun / 2015

Email from Hugo Timoteo to CEO of OHR Strategic Investments. Attachment: Delicore Metals invoice, US$113,625.00

Digital File Name: Email_Some documents Signed and stamped_R

          • Hugo Timoteo, OHR CEO, & C. Rwechungura: 15 / Jun / 2015 to 10 / Jul / 2015 Email Chain: Hugo Timoteo to CEO of OHR Strategic Investments, and Managing Partner of CRB Africa Legal, Charles Rwechungura.

Attachment: Delicore Metals receipt for 50kg gold US$113,625.00

Digital File Name: FW Recipt for 50kg coleteral_R

          • Christian S. Richard & Hugo Timoteo: 09 / Jun / 2015

Email Chain: Christian S. Richard to Hugo Timoteo with Delicore Invoice. Final recipient, CEO of OHR Strategic Investments.

Attachment: Invoice for US$320,400.00

Digital File Name: FW INVOICE HUGO 9-6-2015.pdf

          • Christian S. Richard & Hugo Timoteo: 01 / Jul / 2015 to 05 / Jul / 2015

Email Chain: Christian S. Richard to Hugo Timoteo with Delicore Receipts. Final recipient, CEO of OHR Strategic Investments.

Attachment: Receipt for US$13,000 and Receipt for US$320,400.00 Digital File Name: FW RECEIPT

    • Table of Payments: East Gate Relocation Services

The following payments were made via SWIFT from the OHR Strategic Investment Fund.

Date

Beneficiary

Amount

Sender

31st Aug 2015

East Gate Relocation Services

$270,500.00

OHR SIF

03rd Sep 2015

East Gate Relocation Services

$268,000.00

OHR SIF

14th Sep 2015

East Gate Relocation Services

$150,000.00

OHR SIF

04th Nov 2015

East Gate Relocation Services

$30,000.00

OHR SIF

07th Dec 2015

East Gate Relocation Services

$300,000.00

OHR Partners

TOTAL

$1,018,500.00

      • East Gate Relocation Services Exhibits
        • East Gate Relocation Services Payment Records

a) 31 / Aug / 2015

Copy. SWIFT Record.

US$270,500.00

b) 03 / Sep / 2015

Copy. SWIFT Record.

US$268,000.00

c) 14 / Sep / 2015

Copy. SWIFT Record.

US$150,000.00

d) 04 / Nov / 2015

Copy. SWIFT Record.

US$30,000.00

e) 07 / Dec / 2015

Copy. SWIFT Record.

US$300,000.00

        • East Gate Relocation Services Invoices & Receipts

a) 31 / Aug / 2015

Copy. Invoice.

US$270,500.00

b) 03 / Sep / 2015

Copy. XL File.

US$268,000.00

c) 04 / Nov / 2015

Copy. Email.

US$30,000.00

d) 30 / Nov / 2015

Copy. Invoice.

US$250,000.00

e) 07 / Dec / 2015

Copy. Invoice.

US$300,000.00

        • East Gate Relocation Services Email Correspondence
          • William Fantozzi to CEO of OHR Strategic Investments: 31 / Aug / 2015 Email from William Fantozzi to CEO of OHR Strategic Investments.

Attachment: East Gate invoice, US$270,500.00

Digital File Name: Smelting & Insurance

          • William Fantozzi to CEO of OHR Strategic Investments: 31 / Aug / 2015 Email chain from William Fantozzi to CEO of OHR Strategic Investments.

Attachment: XL File with East Gate invoice total, US$268,000.00 Digital File Name: Fwd Transfers

          • William Fantozzi to CEO of OHR Strategic Investments: 04 / Nov / 2015

Email with invoice details allegedly from Geoffrey Yeri to William Fantozzi, to final recipient CEO of OHR Strategic Investments. Includes East Gate Relocation Services invoice of US$30,000.00.

Attachment: No attachment

Digital File Name: Invoice for Logistic Services

          • William Fantozzi to CEO of OHR Strategic Investments and David Dawes: 30 / Nov / 2015

Email from William Fantozzi to CEO of OHR Strategic Investments, and Director of OHR Strategic Investments, David Dawes.

Attachment: East Gate invoice, US$250,000.00.

Digital File Name: Invoice Assett Relocation KN 301115

          • William Fantozzi to CEO of OHR Strategic Investments: 07 / Dec / 2015

Email from William Fantozzi to CEO of OHR Strategic Investments. Attachment: East Gate invoice, US$300,000.00

Digital File Name: EG Invoice

    • Table of Payments: Advanced Security

The following payments were made via SWIFT from the OHR Strategic Investment Fund.

Date

Beneficiary

Amount

Sender

03rd Aug 2015

Advanced Security Co. Ltd

$500,000.00

OHR SIF

21st Aug 2015

Advanced Security Co. Ltd

$75,000.00

OHR SIF

03rd Sep 2015

Advanced Security Co. Ltd

$132,000.00

OHR SIF

23rd Sep 2015

Advanced Security Co. Ltd

$100,000.00

OHR Partner

22nd Oct 2015

Advanced Security Co. Ltd

$60,000.00

OHR Partner

TOTAL

$867,000.00

      • Advanced Security Exhibits
        • Advanced Security Payment Records

a) 03 / Aug / 2015

Copy. SWIFT Record.

US$500,000.00

b) 21 / Aug / 2015

Copy. SWIFT Record.

US$75,000.00

c) 03 / Sep / 2015

Copy. SWIFT Record.

US$132,000.00

d) 23 / Sep / 2015

Copy. SWIFT Record.

US$100,000.00

e) 22 / Oct / 2015

Copy. SWIFT Record.

US$60,000.00

        • Advanced Security Invoices & Receipts

a) 31 / Aug / 2015

Copy. Invoice.

US$500,000.00

b) 03 / Sep / 2015

Copy. XL File.

US$132,000.00

c) 03 / Sep / 2015

Copy. Email Invoice.

US$132,000.00

d) 14 / Sep / 2015

Copy. Invoice

US$186,000.00

e) 05 / Oct / 2015

Copy. Receipt

US$100,000.00

f) 19 / Aug / 2015

Copy. Invoice

US$136,700.00

        • Exhibits: Fraudulent Documents

On the 4th August 2015, Advanced Security Co. Ltd provided OHR Strategic Investments with a copy of a Cheque Receipt alleged to be from “Evermetals Company Limited’ for US$272,000.00. The issuing authority has not verified the

authenticity of the receipt, but this payment connects Advanced Security Co. Ltd to Evermetals Co. Ltd.

            • Evermetals Royalty Check US$272,000.00
          • Certificates of Origin and Receipts

In an email sent to JTACC on the 05th of October 2016, Fatuma Hamis from the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) confirmed that the ‘Certificates of Origin’ No.A 005801 and No.A 005802 and their corresponding receipts are fake and fraudulent. The certificates were allegedly issued to Delicore Metals Co. Ltd. The Chamber further confirmed that additional Certificates of Origin issued to Evermetals Company and Adex Mining Company were not issued by the Tanzanian Chamber of Commerce.

In an email on the 29th of September 2016, Julieth Kidemi from the Tanzania Revenue Authority (TRA) also verified that all Certificates of Origin submitted throughout the transaction are not genuine.

            • Certificate of Origin No. A 005801 & Receipt
            • Certificate of Origin No. A 005802 & Receipt
            • Certificate of Origin No. A 00222190
            • Certificate of Origin No. A 00223091 & Receipt

In an email sent to JTACC on the 29th of September 2016, Julieth Kidemi from the Tanzania Revenue Authority (TRA) confirmed that the following Customs documents provided throughout the transaction are “not genuine”:

            • Customs and Excise Release Order, Delicore Metals Company (50kg)
            • Customs and Excise Release Order, Delicore Metals Company (150kg)
            • Customs and Excise Release Order, Adex Mining Company (550kg)
            • Customs Declaration Form, Adex Mining Company (550kg)
            • Single Administrative Document, Delicore Metals (50kg)
            • Single Administrative Document, Delicore Metals (150kg)

In an email sent to JTACC on the 11th August 2016, Mr. Jabulani Mthethwa, a Senior Trade Programme Officer from the Southern African Development Community (SADC) confirmed that the following SADC documents provided through the

transaction are “fraudulent documents.” The SADC has issued an official alert about fraudulent Ownership Certificates, warning that the organization has never issued such documents:

            • SADC Ownership Certificate No.SADCTZ076/50KgAU/2015, Delicore Metals Company Limited (50kg), with receipt
            • SADC Ownership Certificate No.SADCTZ079/150KgAU/2015, Delicore Metals Company Limited (150kg), with receipt
            • SADC Ownership Certificate No. 7200, Adex Mining Company LTD (550kg), with receipt

The insurance policy for US$150,000.00 is believed to be a fake policy that was allegedly provided by Goldstone Insurance. Goldstone Insurance’s Managing Director Joshua Ndege responded to a JTACC inquiry via email on the 21st of October 2016, stating the Policy No: 010/061/1/28652/2015 and associated insurance quotes Ref: GSIAL/INV015/0105 and Ref: GSIAL/INV015/0106 are fraudulent and fake. However, JTACC is also in possession of an email chain in which Joshua Ndege emailed the insurance quotes in question to Per Gjode, an individual believed to be involved in the fraudulent gold scheme. Thus, it is possible that Joshua Ndege knowingly provided fraudulent insurance paperwork.

            • Goldstone Insurance Policy No. 010/061/1/28652/2015
            • Goldstone Insurance Quote Ref. GSIAL/INV015/0105
            • Goldstone Insurance Quote Ref. GSIAL/INV015/0106
        • Email Correspondence – Verification of Fraud

The following files are provided in the accompanying USB stick:

          • 29 / Sep / 2016: Tanzanian Revenue Authority Email Verification

Julieth Kidemi confirmed documents provided by the Seller Party and Associates, allegedly issued by the Tanzania Revenue Authority, are “not genuine documents.”

Digital File Name: FW: TRA Customs Document Verification

          • 28 / Sep / 2016: Tanzania Chamber of Commerce, Industry and Agriculture Email Verification

Fatuma Hamis verified that all submitted Certificates of Origin related to the gold transaction were “not issued by the Chamber.” She further confirmed that the prices of receipts submitted by the Seller Party and Associates, ranging from US$5,200 – US$5,800, were “very huge” compared to TCCIA’s actual administrative charges for such certificates, ranging from the local currency’s approximate equivalent of US$2.50 – US$27.

Digital File Name: RE: Fraud Investigation

          • 11 / Aug / 2016 Southern African Development Community Email Verification Jabulani Mthethwa verified that all submitted Ownership Certificates were fraudulent documents. He also provided an official alert issued by the office of the Secretariat warning that the “SADC does not have such documentation.”

Digital File Name: ISSUANCE OF FRAUDULENT SADC CERTIFICATES OF OWNERSHIP

Attachment: Notice_ Fraudulent SADC document.pdf

          • 21/ Oct / 2016: Goldstone Insurance Agency Email Verification

Joshua Ndege, Managing Director of Goldstone Insurance Agency, confirmed that the insurance policy used by the Seller Party and Associates and allegedly issued by Goldstone Insurance “was not from us…it is a total forgery.” He further stated the policy quotes were also a forgery. It should be noted that the email chain starts with Mr. Ndege issuing the insurance quotes in question from his Goldstone email address to Per Gjode, a colleague of Mr. William Fantozzi.

Digital File Name: RE FW Insurance Document Verification

    • Payments: Evermetals Co. Ltd

Evermetals did not receive any direct payments from OHR. Instead, Evermetals and its CEO Christian Sailie Richard, claim to have entered a short-term loan agreement with “Unicredit Microfinance” for US$505,000.00.

The basis of this loan was to pay for fines from the “Kenya Revenue Authority” based on false-claims that the Kenya Revenue Authority impounded the ‘gold’ after export. The veracity of the loan has not been verified with “Unicredit Microfinance” as we have been unable to find contact details for the organization.

We note that whether the loan existed or not; the basis for the loan has been proved as fraudulent. On closing of the short-term loan-agreement from Unicredit Microfinance, with penalty charges, the amount due was claimed at US$650,000.00. This payment was made from OHR to CRB Legal who are believed to have then paid it to “Unicredit Microfinance.”

      • Timeline of “Unicredit Microfinance” Agreement

Date

Event

02 Jul 2015

Christian Sailie Richard provides loan agreement to OHR that describes the alleged seizure of goods by Kenya Customs and that the loan is to pay the fine and issue documents to permit export of gold. This event and documents provided has been described by the relevant authorities as fake and false.

09 Jul 2015

OHR provided letter of demand from Unicredit Microfinance sent via email from Christian Sailie Richard

22 Jul 2015

Christian Sailie Richard sends a letter to CRB Legal Africa on an Evermetals Co. Ltd and Metal Ore Group Int. letterhead demanding payment of US$550,000.00

24 Jul 2015

OHR provided copy of bank transfer form for US$505,000.00 paid to Unicredit Microfinance deposited by CRB Africa Legal.

27 Jul 2015

OHR sends US$100,000.00 directly to Unicredit Microfinance

27 Jul 2015

Unicredit Letter of release after receiving US$650,000 from OHR

        • Evermetals Financial Agreements Documentation
          • 02 / Jul / 2015 Copy. Unicredit Loan Agreement. US$505,000.00
          • 09 / Jul / 2015 Copy. Letter of Demand (Unicredit)
          • 22 / Jul / 2015 Copy. Letter of Demand (Evermetals)
          • 24 / Jul / 2015 Copy. Money Transfer (Unicredit) US$505,000,00
          • 27 / Jul / 2015 Copy. SWIFT Payment (Unicredit) US$100,000.00
          • 28 / Jul / 2015 Copy. Letter of Release (Unicredit)
        • Evermetals Email Correspondence

The following files are provided in the accompanying USB stick:

          • Christian Richard to Hugo Timoteo and CEO of OHR Strategic Investments: 2 / Jul / 2015 to 10 / Jul / 2015

Email chain originating with Christian S. Richard to the CEO of OHR Strategic Investments, Hugo Timoteo, Martin Lindazi, and Advocate Mwesigwa Muhingo of Maxim Advocates; eventually forwarded from Hugo Timoteo to final recipients Charles Rwechungura and CEO of OHR Strategic Investments.

Attachment: Embedded document pictures, US$505,000 Loan Agreement between Unicredit and Evermetals Company.

Digital File Name: FW LOAN AGREEMENT, KRA RECEIPT & MUNOSCO CERTIFICATE

          • Christian Richard to Hugo Timoteo and CEO of OHR Strategic Investments: 9 / Jul / 2015 to 10 / Jul / 2015

Email chain originating with Christian S. Richard to CEO of OHR Strategic Investments, Hugo Timoteo, Martin Lindazi, and Advocate Mwesigwa Muhingo of Maxim Advocates; eventually forwarded from Hugo Timoteo to final recipient CEO of OHR Strategic Investments.

Attachment: Embedded document pictures, Unicredit Letter of Demand US$550,500.00

Digital File Name: FW Letter from UniCredit

          • Christian Richard to Adv. Charles Rwechungura, and others: 23 / Jul / 2015 Email from Christian Richard to Adv. Charles Rwechungura of CRB Africa Legal,

CEO of OHR Strategic Investments, Adv. Mwesigwa Muhingo of Maxim Advocates, Hugo Timoteo, and Martha Kimario of CRB Africa Legal.

Attachment: Letter of Demand, Evermetals US$550,500.00

Digital File Name: FINAL EVERMETALS LETTER TO CRB LEGAL2.pdf

          • James Tidmarsh to Charles Rwechugura, CEO of OHR Strategic Investments, and William Fantozzi: 26 / Jul / 2015

Email chain from CEO of OHR Strategic Investments to Christian Richards, forwarded by the CEO to James Tidmarsh, William Fantozzi, David Dawes, and Charles Rwechungura.

Attachment: Letter of Demand, Evermetals US$550,500.00

Digital File Name: Ohr Partners: Payment (justification and copy of SWIFT)

          • CEO of OHR to Christian Richards and others, 24 / Jul / 2015

Email chain from CEO of OHR Strategic Investments to Christian Richards, forwarded by the CEO to James Tidmarsh, William Fantozzi, David Dawes, and Charles Rwechungura.

Attachment: Unicredit Money Transfer, US$505,000.00 Digital File Name: Fw

          • Mooneerah Karoo to CEO of OHR Strategic Investments and David Dawes; Mwesigwa Muhingo to James Tidmarsh, and others: 27 / Jul / 2015 to 28 / Jul / 2015 Email chain originating with Mooneerah Karoo, Director of OHR Strategic Investment Fund Ltd., to CEO of OHR Strategic Investments and David Dawes; final response from Mwesigwa Muhingo to James Tidmarsh, Christian Richards, Hugo Timoteo, Delicore Metals, CEO of OHR Strategic Investments, and others.

Attachment: Embedded copy of SWIFT payment, US$100,000.00 Digital File Name: Re: OHR Partners: SWIFT transfer from DAR

    • Insurance Fraud: Overview

Insurance fraud was a common and consistent feature of the transaction. OHR as the buyer was requested to make insurance payments for the movement of the gold on multiple occasions. The companies and policies that were provided to OHR have shown to be consistently fraudulent through review by the Tanzanian Insurance Regulatory Authority.

The following fraudulent insurance documentation was supplied to OHR Investment Fund by Tanzanian insurance companies, the Seller Party, or business associated with the Seller Party who are suspected of being involved in the smuggled gold scheme.

        • AAA Insurance Co. Ltd Insurance Documentation
          • AAA Insurance Air Cargo Certificate of Insurance (50kg Gold)

Issue Date: 8 June 2015 Policy No: JUNEPD002145 MA/C No:02490

Cargo Insured: 50kg Gold Nuggets Sum Insured: USD $1,900,000.00 Premium: USD $28,500.00




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