Lodge Director Arraigned Over Sh48.8M Fake Investment Scheme

George Maina Muriithi, the Director of Mara Ndovu Lodge Limited, has been arraigned at the Milimani Law Courts over allegations of defrauding a Nairobi-based investor of Sh48.8 million in a fraudulent investment scheme.

According to an investigation report filed at Parklands Police Station, the incident dates back to October 2022, when Muriithi allegedly approached the complainant with a seemingly lucrative offer to buy 48,800 shares in his company — each priced at Sh1,000, totaling Sh48.8 million.

Convinced by the proposal and reassured by formal documentation, the complainant deposited the funds in two installments via Otieno & Ambrose Advocates, the law firm representing Muriithi. On December 22, 2022, a formal share purchase agreement was drafted by the same legal firm, outlining the agreed sale of shares.

However, despite the financial transaction being completed, the promised transfer of shares never took place. When Muriithi became unresponsive, the complainant filed a report with police, prompting detectives to open a full-scale probe into the matter.

“Investigations established that while a formal agreement existed, Muriithi failed to honor the deal despite receiving full payment,” said a detective familiar with the case.

Muriithi was arrested and charged with obtaining money by false pretenses. Appearing in court on Friday, he pleaded not guilty to the charges.

Detectives opposed his release on bond, citing concerns that he may flee the country or interfere with witnesses. The court agreed to hold the suspect in custody at Capitol Hill Police Station pending a ruling on his bond application, which is scheduled for July 15, 2025.