Court orders arrest of trader accused of Sh100m fraud

A court has ordered the arrest of a trader charged with conspiracy to defraud heirs of a deceased couple of their business worth Sh100 million.

Milimani Law Courts Senior Principal Magistrate Bernard Ochoi ordered the arrest of Mr Shahdadpuri Chanihyam Choithram for contempt of court. He failed to appear in court on May 13 to answer to 13 counts of fraud.

Mr Choithram is jointly charged with lawyer Philemon Morara Apiemi, who was released on a Sh500,000 cash bail on April 29 after denying seven counts of related offences.

Mr Choithram had been directed by Chief Magistrate Francis Andayi to appear in court on May 13 to plead to charges of  conspiring to defraud the heirs of the estate of the late Suresh Lakhian and Narian Choithram Shahdadpuri, an export processing company.

State prosecutor James Gachoka said the accused, who is an Indian national, is a flight risk.

Arguments

Defence lawyer Collins Ario opposed the plea for an arrest warrant, saying the accused can neither jump bail nor abscond court since the police know his residence.

Mr Ario added that Mr Choithram was unwell and was advised by his doctor to rest.

Regarding Mr Apiemi, the lawyer said he had experienced problems connecting to the Judiciary's network during the virtual mention of the case.

In response, Mr Gachoka stated, “No authentic medical records in respect of Choithram were filed in court to show he is unwell.”

On April 29, Mr Ario presented to the court a medical report showing Mr Choithram had contracted Covid-19 and that his doctors had advised him to remain in isolation for 14 days.

Mr Ario undertook the task of producing the accused (Mr Choithram) in court.

The court directed Mr Choithram and Mr Apiemi to appear in court on May 20.  

The accusations

Court documents show that between October 16, 2016 and June 13, 2018, while purporting to be a director of Global Apparels Kenya (EPZ) Limited and an external advocate the company, respectively, the two conspired to defraud the heirs of Suresh Lakhian and Narian Choithram Shahdadpuri.

They are accused of conspiracy to defraud the heirs of 250,000 ordinary shares worth Sh25 million and 75,000 preferential shares valued at Sh75million.

The two are also accused of falsifying the company's resolutions, transfer deeds and statutory declarations to the benefit of Mr Choithram.

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