Addis Ababa's Federal High Court has sentenced Daniel Yohannes Kess, an executive of Fantek Investment, for defrauding victims of over 600 million Birr. He allegedly used false advertisements promising electric taxi investments to lure numerous individuals. The case highlights a scheme involving modern vehicles amid Ethiopia's transport challenges.
The Federal High Court in Addis Ababa's Lideta branch, through its 2nd special criminal bench, has sentenced Daniel Yohannes Kess, an executive at Fantek Investment. He was charged under articles 32(1a), 35, and 38 of the 1996 Penal Code, as well as article 10(1) of Computer Crime Proclamation 958/2008.
According to court records, Kess defrauded over 600 million Birr by running false advertisements across government, private, and social media promising electric taxis to address transport issues. Over 5,000 people viewed the ads, with more than 1,430 registering and paying upfront fees: 60,000 Birr for registration and 247,500 Birr (25% of vehicle cost), or up to 950,000 Birr per vehicle in some cases, totaling over 1.86 billion Birr.
Fantek Investment, established in 2013 as Halo Taxi and Halo Car, claimed to import vehicles from China's BYD company at 1.9 million Birr each, requiring 50% upfront (950,000 Birr). Despite promises of delivery within three months and five-year warranties, only about 100 vehicles were provided to Kess, his associates, and select beneficiaries, while claiming over 520 deliveries. Nineteen similar cases have been filed.
Prosecutors stated that Kess used computers to fabricate data, concealed facts, and tricked victims into signing fraudulent contracts to perpetrate the scam.
