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When Robert Muli Mutua clicked the ‘finish’ button on an airline booking page on his computer screen, he let out a sigh of relief. After decades of working and living in the United States of America his life-long plans were finally coming together.
Seconds later, he received an e-ticket in his email. After confirming that the details on the ticket were correct, he looked outside the window of his house in Carrolton, Ohio. It was Spring time. His apartment was getting chilly. As he walked away from the table towards the thermostat to turn up the heat, he thought about the warm nights and hot days in Kenya that were a permanent fixture of his childhood.
He smiled knowing that in a matter of days he would go back home triumphant. He came. He saw. He conquered. An embodiment of the American Dream.
In less than 24 hours, he would for the last time exit the country that had eaten away his most productive years. At 7:00AM the next day, Friday April 12th 2018, he would be homeward bound. He was determined to make sure his 60th birthday was celebrated somewhere near the Equator and that he too would confidently walk into his retirement.
After all his pension, worth some $1.3million, was already in bank accounts sprinkled around various capitals of the world. Most of it accumulated during a 30-day looting spree where Muli, and two others went up against the US Federal government in an incredible con game and won. Or so it seemed.
While Muli planned his retirement, Jeffrey L. Schurott, a relatively fresh graduate of the Federal Bureau of Investigations Academy at Quantico and now a Special Agent with the government agency received a file at his desk.
In it was an affidavit by a County Sheriff detailing some questionable financial dealings. The paperwork from the Sheriff’s department seemed to implicate Muli and his co- conspirators, some of whom were thousands of miles away in Kenya engaged in a scheme to defraud and launder money by targeting American government departments, schools and universities.
After all was said and done, the simple yet elaborate scheme would see the 59-year-old Muli walk away with more than $1.3million.
Documents from the United States Department of Justice show how Muli hatched and executed the audacious plan before his scheme was unearthed. But in 30 long days between July and September of 2018, Muli was living the American Dream he had chased for most of his life.
On June 18, 2018, Muli opened a business account in the name of Rogram Home Improvement LLC at First Commonwealth Bank in Ohio.
Muli presented himself at the bank as the owner of the firm whose Company Registration Number is listed as 1569598, registered in Ohio on September 14 2005.
The company remained inactive for the next 13 years, until June 2018 when he opened a bank account. It is through this account that investigators say Muli and others used to defraud at least four state governments in the USA.
Towards the end of July 2018, Fairfax County in the state of Virginia was in the process of ordering for some brand new computers from IT Solutions company Dell. The state had an already existing agreement between itself and the IT Company.
Muli, at that time unknown to both Fairfax authorities and Dell however had other plans. He reached out to an insider at Dell, who became a willing participant in the scheme that was about to unfold. With a collaborator by his side, Muli was ready to act.
Two months after he opened the account at the First Commonwealth Bank, a third accomplice was webbed into the scheme. His task looked mundane, but it proved to be the icing on the cake.
As Muli continued his odd jobs in Ohio, the third man quickly drafted an email to Fairfax County instructing county officers of a change in payment procedures.
“On August 6, 2018, Fairfax County received an email from an account falsely claiming to be from Dell requesting a change to the destination account for payments to the IT firm. In fact, the email was from the third recruit,” reads part of an affidavit presented to court by Special Agent Schurott.
“The fraudulent account’s email address was closely similar to that of the Dell employee who is thought to be a collaborator in Muli’s web,” he continues.
To make the request authentic, a few things had to be done. First, the email address to be used was strikingly similar to that of the original Dell sales person appointed by Dell to seal the deal.
Secondly, the original vendor agreement, public only to Dell and Fairfax officials had to be attached to the email. This was provided by Muli’s inside man at Dell.
With these two critical things out of the way, the trio was ready to move. Also crucially, the email had a separate instruction with a revised Automated Clearing House information; this changed the original bank routing number and account number to another at the First Commonwealth Bank that was registered to Muli.
“The revisions changed the email address for notices of payment to their fraudulent account. The email also included a voided check issued by First Commonwealth Bank, which reflected Dell’s true name and address,” Schurott said during a court hearing.
A review of the emails from Muli’s man to Fairfax County shows the emails were sent from a single Internet Protocol (IP) address from Kenya, IP address 41.72.192.154.
From about August 8, 2018 through to about September 7, 2018, Fairfax County sent twenty-four payments, totaling to just over $1.3million to the fraudulent account set up by Muli as payment for the Fairfax’s computing needs.
The payments ranged from as low as $328 to as much as $240,000 at a time.
The money however never stayed in Muli’s American account. Investigations have shown that between August 10 2018 and September 5 2018, Muli personally withdrew some $614,042 through checks and distributed the money to his other co- conspirators.
Of this amount Muli personally received some $28,707, his company Rogram Home Improvement LLC received some $332,255.
His Dell inside man received some $142,357 while his Kenyan Connection received some $82,000 for his role in the matter.
“While engaging in the same scheme to defraud other entities, Muli sent money via numerous wire transfers to Kenya and is the subject of an investigation by the San Diego Division of the Federal Bureau of Investigation,” reads Schurott’s statement.
Muli’s inside man at the IT firm was also Kenyan. Unlike Muli though, he made it to the airport in time and flew home.
“Muli’s co- conspirator departed the United States to Kenya on or about September 21,2018 and has not returned to the United States, despite having purchased a round trip airline ticket. The San Diego Division possesses a warrant for the arrest of Co-conspirator 2. Muli exchanged communications with the co-conspirator via U.S. mail,” investigators say.
The Fairfax Job was not the only one that Muli and his team pulled off. In February 2018, six months before what became their biggest heist, Muli had preyed on yet another local government agency. His modus operandi remaining the same, he created a false email address, mirroring existing communications between the local government body and yet another service provider. In this case too, he directed Detroit City redirect payments to his account.
AFFIDAVIT IN SUPPORT OF CRIMINAL COMPLAINTCRIMINAL COMPLAINTCRIMINAL INFORMATIONSTATEMENT OF FACTSPLEA AGREEMENT
A review of the emails from Muli’s Kenyan operative to Detroit City officials shows the emails were sent from IP address 41.72.192.154, the same Kenya-based IP address that was used to send emails during the Fairfax Job.
On May 25, 2018, Detroit City made a $69,464 payment to Muli’s account. On June 1, 2018, a second payment of $699,802 was made to his accounts.
Ten days later, on July 11, Detroit’s Office of the Inspector General received a complaint from another government employee, who stated that the city made two separate payments, totaling some $769,266 into Muli’s account.
Of this amount, some $49,990 was sent to Muli’s company Rogram Home Improvement, in a single transaction on May 25, 2018, the same day the first payment was made. $74,527 went to Muli’s personal account.
However, despite the fact that investigators have combed through Muli’s transactions, not all swindled funds can be accounted for.
“Upon receipt of these funds, Muli and Rogram Home Improvement LLC sent a portion of this money to Kenya via international wire transfer. Muli also made a series of money transfers from the account to an unknown destination,” court records read.
On June 12th this year he struck a plea bargain with federal prosecutors in Alexandria, Virginia. Under the plea deal, Muli admitted that he conspired to commit wire fraud against four separate state and local governments. He faces up to 20 years in prison when he is sentenced in October.
According to court documents, Muli would submit phony invoices to the governments’ finance departments. The invoices were made to resemble legitimate bills from vendors like Dell Computers.
The biggest victim was Fairfax County which lost more than $610,000. The city of Detroit lost more than $130,000 and the state of Vermont lost some $3,900.
A day to his departure from the United States, Special Agent Schurott had tied all the loose ends in Muli’s case. And as the 59-year-old made plans for a clean exit, the corporate fraud, complex financial crimes, and other white-collar crimes specialist had other plans.
An official complaint was made in a US court. A search warrant to was issued. Permission for surveillance was granted, so too was an arrest warrant. Muli was cornered. When confronted with the evidence gathered by investigators, Muli pleaded guilty to stealing nearly $750,000 from state and local governments by submitting dodgy invoices to them.
The handbrake had been pulled just as he was beginning to taxi into a comfortable retirement.