Timothy Kang’arua, a student at JKUAT, gained entry into I&M Bank computer systems then proceeded to transfer cash from the banks’ MPESA paybill account.
According to police, Kang’arua stole 300 ID card of Kenyan and then illegally registered Safaricom accounts in their names.
After registering the lines, Kang’arua used the stolen ID cards to open bank accounts with Equity Bank.
According to court documents, Kang’arua then used I&M bank login credentials in the Safaricom web portal.
Kang’arua then transferred Sh41 million from I&M’s Paybill Number 517822 to other persons and later to himself.
The Assets Recovery Agency now wants court to freeze Kanga’rua’s bank accounts.
Court documents reveal how Kang’arua executed the elaborate scheme to defraud the bank.
According to Detective Jackson Nzau, the crime was committed in November 2017.
“The players in this complex scheme, included persons in the employment of I&M, who uploaded funds from the Safaricom portal using the bank’s party login credentials to the primary list of beneficiaries mobile phone lines,” Nzau says.
The cash was then transferred to the accounts of the beneficiaries at Equity Bank and eventually to Kang’arua’s account. The student has an account with Equity Bank.
The agency wants the court to issue a preservation order prohibiting him from transacting, withdrawing, transferring funds held in his name at Equity Bank for 90 days.
ARA says the funds held in the account are proceeds of crime.
ARA said investigations have established that the deposits and withdrawals were made in tranches below Sh1 million to evade the reporting threshold put by the Central Bank of Kenya.
On November 17, 2017, Lemuel Wanjiru received Sh827,500. The funds were on the same date transferred to Kang’arua’s account.
On the same day, Simon Wahome received Sh757, 600 while Collins Kaguchia received Sh897, 150. Both tranches were subsequently transferred to Kang’arua’s account.