US takes down Zimbabwe's gold smuggling ring, Pattni exposed

Pattni’s network exploited Zimbabwe’s natural resources, overreported cash proceeds from foreign sales to claim inflated compensation, and bribed officials to shield their illicit operations.
A total of 28 individuals and businesses involved in gold smuggling network in Zimbabwe were
Investigations show the gold smuggling and money laundering scheme had direct ties to President Emmerson Mnangagwa of Zimbabwe.

The U.S. Department of the Treasury has imposed sanctions on 28 individuals and businesses involved in a gold smuggling network in Zimbabwe. Among the culprits slapped with far-reaching sanctions by the Office of Foreign Assets Control (OFAC) is controversial businessman Kamlesh Pattni, who has been running a vast gold-smuggling and money-laundering network in Zimbabwe, and deftly coordinating its activities across multiple countries.

The U.S. Treasury Department noted that Pattni’s criminal network was increasingly robbing Zembabwe’s people of their natural resources.

“Across the globe, when corrupt actors like Pattni choose to exploit openings in governance structures to benefit themselves and their cronies, communities suffer and public trust is undermined,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith.

He added, “Corruption respects no borders and its consequences are felt worldwide. As we mark International Anti-Corruption Day, the U.S. reaffirms our commitment to use all available tools to hold these individuals to account for their schemes.”

According to U.S. authorities, Pattni’s network facilitated these illicit activities by bribing government officials across jurisdictions and deploying trusted supporters to mask the real ownership of their companies while increasingly weaving an international web of entities to completely hide illicit activities running into billions of dollars.

US sanctions target Pattni and his web of businesses

In order to completely annihilate Pattni, the U.S. has rolled out sanctions, targeting the 28 individuals and companies closely associated with Pattni. Going forward, “all property and interests in property of these targets that are in the United States or in the possession or control of U.S. persons must be blocked and reported to Office of Foreign Assets Control (OFAC).”

“Furthermore, unless an exception applies, any foreign financial institution that knowingly facilitates a significant transaction for any of the individuals or entities designated today could be subject to U.S. sanctions.”

Pattni turns Zimbabwe global hub of gold smuggling, money laundering

At his hub in Zimbabwe, U.S. authorities established that Sanjay Keshavji Vaya (Sanjay) is considered Pattni’s “right hand man”, while his son Raj Vaya Sanjay (Raj) supports Pattni by providing him gold and acting as a director on the Pattni-controlled Skorus Investments (PVT) LTD.

In the recent past, the statement added, Pattni and several of his accomplices have attempted to set up new operations in resource-rich countries other than Zimbabwe, adding a fresh layer of complexity to his illicit network, and further posing a danger to the U.S. and global financial systems.

In a statement, the U.S. Treasury said it trailed and pinned down Pattni’s network through collaborative efforts with the Federal Bureau of Investigations (FBI) and agencies in the United Kingdom (UK).

According to U.S. investigators, key among the network of companies that Pattni oversees is Sun Multinational DMCC (Sun Multinational), an entity that is wholly owned by Marwa Investments Limited, which in turn is owned by one of Pattni’s long-time supporters and brother-in-law, Mukesh Manuskhlal Vaya (Mukesh).

Pattni, who has been identified as Sun Multinational’s “Group Chairman” by its CEO, Swetang Sinha (Sinha), has overseen the set up of numerous Sun Multinational subsidiaries, a scheme that creates potential avenues for the laundering funds.

The U.S. Treasury identified Sinha as a main supporter for Pattni, as well as having been involved in corruption engagements directly touching President Emmerson Mnangagwa of Zimbabwe. Mr. Mnangagwa was sanctioned on March 4, 2024, pursuant to E.O. 13818 for corruption and serious human rights abuse.

Another personality that has been critical in Pattni’s gold-smuggling and money laundering schemes was Rahul Sood (Sood), Sun Multinational’s “Managing Director.” U.S. investigators said that Sood steps in to acting as a manager and in other roles for numerous companies in Pattni’s vast network.

Additionally, Mishaal Hitesh Pattni (Mishaal), Pattni’s nephew, was equally identified as a key figure in Pattni’s extended network of companies, often facilitating his activities by featured as either manager or employee depending on circumstances.

“Furthermore, included in the Sun Multinational group of companies are Fiza Gold and Bullion Trading L.L.C, which features Sood as its Manager; Golden Luxury Jewellery Trading L.L.C, which features Mishaal as its Managing Director; Memories Golden Jewellery L.L.C, which features Sood as its Manager; Ruhmeer Diamonds DMCC, which features Sood as a Manager; and Sun Star Travel & Tourism L.L.C. Although not part of the Sun Multinational group of companies, Sood also owns Singapore-based Sahara Petroleum PTE. LTD. and manages the United Arab Emirates-based Precious Bullion DMCC, where Mukesh is also an authorized signatory,” the statement from U.S. authorities stated in part.

“British Virgin Island-based Rubini Investment Group Limited at one time controlled Pattni’s investments in real estate. Pattni also controls UAE-based Samaria Holdings Limited, UAE-based Suzan General Trading JLT, and Kenya-based Manurama Limited. Pattni has long controlled the trading firm Suzan General Trading (PVT) LTD, located in Zimbabwe.”

The FBI works closely with the Treasury Department and other partners to seek accountability from entities trying to take advantage of the U.S. financial market.

Corrupt officials and their associates negatively affect their citizens by stealing natural resources and diverting funds for personal use that otherwise would provide infrastructure, enhance education, and improve their economies, the Treasury Department explained.

It added: These sanctions, on International Anti-Corruption Day, exemplify that we will not allow borders to impede justice and ensure we prevent these criminals from accessing their stolen wealth.

Why Pattni is not new to gold-trading fraud and money-laundering

Kamlesh Mansukhlal Damji Pattni (Pattni) is not new to shady deals orchestrated at the top level of power in Africa. The controversial businessman turned pastor first came to international attention following his involvement in the infamous Goldenberg scandal in Kenya in the 1990s.

At a time when then-president Daniel Moi was grappling with an ailing economy amid thinning forex inflows, Pattni was accused of manipulating Kenya’s export incentives and corrupting senior Treasury officials to facilitate his illicit trade. Although Pattni denied any wrongdoing in a commission of inquiry, he fled Kenya under a cloud only to surface in Zimbabwe.

According to the U.S., in Zimbabwe, Pattni created friendships with the then-President Robert Mugabe, quickly setting up a scheme similar to the one he ran in Kenya.

Pattni and members of his network engaged in a scheme wherein they would generate cash via the sale of Zimbabwean natural resources in foreign jurisdictions.

When Pattni and his network would return to Zimbabwe with the cash from the sale of the natural resources, they would overreport the amount of cash being brought back into the country, receive compensation on the overreported cash, and bribe government officials in Zimbabwe to receive protection for their illicit activity.

Pattni then hid the profits behind a global network of companies often controlled by members of the network, including frontmen, facilitators, couriers, and other supporters.