NAIROBI, Kenya- Three members of a family have been sentenced to 10 years in prison after a Kisumu court convicted them of money laundering and handling proceeds from a Sh113.2 million fraud at Such Enterprises Limited.
The convicts are Christopher Joseph Okal, a former accountant at the Kisumu-based company; his brother, Vincent Anyumba; and their mother, Grace Minayo Okal.
Senior Principal Magistrate Fatuma Rashid found them guilty on all six counts against them.
Each received a 10-year sentence for money laundering and a further 10 years for acquiring and possessing proceeds of crime.
They were also sentenced to five years for conspiracy to commit a felony.
Christopher Okal received an additional five-year sentence for stealing by servant and fraudulent false accounting, while his mother and brother were each sentenced to three years for stealing.
Those terms will also run concurrently.
Court heard how company funds were diverted
The case involved the diversion of customer payments and wholesale goods worth Sh113,227,529 between October 2020 and July 2021.
Prosecutors told the court that Okal manipulated the company’s accounting system by creating fictitious transactions and redirecting customer payments to accounts linked to his co-convicts.
An audit report found that Sh113,227,529 had not been accounted for.
The court also heard that some customers were instructed to deposit money for goods into bank and mobile money accounts associated with the three, instead of Such Enterprises’ official accounts.
Forensic document examination and other evidence showed that Okal used his access to alter company records and conceal transactions.
The family denied the charges, arguing that the transactions were legitimate business arrangements.
But Magistrate Rashid rejected that defence, finding the prosecution had established a coordinated scheme to defraud the company and conceal the proceeds.
Rashid described Okal as the mastermind, saying he used accounts belonging to his mother and brother to hide the trail of customer payments.
The prosecution was led by Deputy Director of Public Prosecutions Daniel Karuri and Principal Prosecution Counsel Douglas Moseti.
The court heard evidence from company employees, customers, bank officials, forensic examiners and investigating officers.
The convicts have 14 days to appeal against both their convictions and sentences.
