Two in court for conspiracy to defraud banks of Ksh.300 million

Two people were on Thursday arraigned in court charged with electronic banking fraud that could have caused the loss of over Ksh.300 million in two local banks.

The two, Martin Machere Karuri and Reuben Tum appeared before Chief Magistrate Francis Andayi and denied several counts of stealing, electronic fraud, handling stolen properties and conspiracy to steal.

Machere is accused that between January 1 and January 20, 2019, jointly with others not before court, he altered data in the bank’s core banking system by interfering with 22 prepaid account balances of customers thereby causing a loss of Ksh.294,800,003 to the customers.

He was also charged with stealing Ksh.5 million from Family Bank on January 19, 2019 at an unknown place within the country. The same night, he is also accused of withdrawing Ksh.807,684 from his account knowing that it was stolen money.

Tum, on the other hand, is accused that between June 12, 2018 and July 8, 2018, he fraudulently altered data in a SBM Kenya, formerly Chase Bank, core banking system by interfering with 43 clients’ account balances causing loss of Ksh.12,504,000.

He was also charged with stealing Ksh.156,000 from the then Chase Bank on July 8, 2018 at an unknown place within the country.

On the second count, he is said to have withdrawn Ksh.105,000 through ATM and M-Pesa on July 8, 2018 knowing it to be stolen.

He was also accused of conspiracy to steal Ksh.12,504,000 from the lender on diverse dates between June 1, 2018 and July 8, 2018.

Machere was released on Ksh.1 million cash bail or a bond of similar amount while Tum was released on a Ksh.500,000 bond or a cash bail of Ksh.300,000.

The matter will be heard on March 5,2019.