Kenyan Detectives Track Down Property Bought with Sh1B Jobs Scam Cash

The investigation into the First Choice Recruitment Agency overseas jobs scam has uncovered how key suspects used the proceeds of their criminal activities to purchase properties in Nairobi, Machakos, and Eldoret.

The Assets Recovery Agency (ARA) has characterized this fraud as an intricate scheme involving prominent individuals who have employed proxies to conceal their ill-gotten gains. During a session with the Senate Labour and Social Welfare Committee, ARA Director Alice Mate revealed that their preliminary findings indicate a sophisticated money laundering operation designed to obscure the origins of the illicitly acquired funds. The agency has identified four properties linked to one suspect, spread across the aforementioned cities.

However, the investigation faces challenges as many of the suspected criminal properties are registered under third-party names, complicating the tracing process. The ARA has taken precautionary measures by placing caveats on 21 motor vehicles registered to key suspects. These vehicles are currently under scrutiny to determine whether they were purchased with the proceeds of the fraud. ARA Deputy Director Timothy Nderitu emphasises the complexity of unravelling money laundering schemes and the agency’s commitment to building a robust case before pursuing legal action to preserve the suspected assets.

The scope of the investigation extends beyond the publicly known suspects, with the ARA identifying seven additional key individuals implicated in the scandal. The agency is actively profiling third parties suspected of involvement. A crucial aspect of the fraudulent operation involved the opening of more than 27 bank accounts across five different financial institutions, which were used to transact large sums of money obtained from young Kenyans seeking employment abroad. Mate discloses that between February 2020 and May 2023, these accounts received approximately Sh300 million.

The funds were systematically withdrawn in cash amounts just below the reporting threshold, a tactic commonly employed in money laundering operations. Curiously, despite the high volume of transactions, most of these accounts now show zero balances, with only a few maintaining negligible amounts. The First Choice Recruitment Agency scandal has left over 1,200 victims seeking restitution after falling prey to the fraudulent overseas job scheme. The agency’s CEO Judy Jepchirchir and her associates are accused of misappropriating funds collected from aspiring job seekers.

Jepchirchir’s involvement extends to 11 companies where she holds significant positions, either as a director or a bank account signatory. Investigators face additional challenges as many of the receipts provided by victims lack official company letterheads or stamps, making it difficult to establish a direct connection to the agency. The Senate committee has called for the refund of Sh1 billion to the affected individuals, including approximately 8,000 youth who have been left in financial distress due to the agency’s failure to deliver on promised job placements abroad.