By Sara Camara
MONROVIA, LIBERIA – An American national has been incarcerated in Liberia after being indicted for allegedly defrauding a foreign company and the Liberian government of over US$4.8 billion in mineral assets and revenue.
Leonard Wayne Kragness was ordered jailed by the Monrovia City Court, facing charges of criminal conspiracy, criminal facilitation, forgery, and theft of property. He is accused alongside Liberian nationals Koisee L. N. Garmo II and Fahn Garmo.
“You are hereby commanded to arrest the living bodies of Leonard Wayne Kragness… and forthwith bring them before the Monrovia City Court, Temple of Justice Building, Montserrado County to answer to the charge,” stated Stipendiary Magistrate L. Ben Barco in the court’s arrest warrant.
The charges stem from a complaint filed by foreign businessman Fida Sardor Hussian, who alleges that Kragness, while employed to file mineral exploration licenses for three mining blocks, conspired with his co-defendants to misrepresent ownership of those licenses and siphon company funds.
According to court documents, Kragness allegedly colluded with attorney Koisee L. N. Garmo II, purporting to be the 100 percent shareholder of Sinoe Mining and Exploration Inc. Garmo, acting as legal counsel, is accused of drafting and signing an attestation letter to Erwin Mulder, CEO of Ace Global B.V. in The Hague, Netherlands, falsely asserting Kragness’s ownership.
This alleged deception led to the loss of three mineral blocks (Blocks 1, 2, and 3) valued at an estimated US$4,819,321,807. The Liberian government is also said to have been deprived of significant potential revenue as a result.
Beyond the mineral asset fraud, Kragness is accused of making unauthorized withdrawals totaling US$3,544,035 from the company’s account between August 2012 and April 2024. These funds were reportedly transferred to an account belonging to his personal company, AA Agro, at Ecobank Liberia. Noteworthy withdrawals include US$60,000 and US$90,500, none of which were approved by the company’s CEO or board.
A formal demand for explanation was sent to Kragness on July 13, 2024, but he reportedly failed to respond and severed all communication. Prosecutors argue that the misuse of these funds for personal benefit constituted a criminal offense, violating company bylaws and national financial regulations, causing substantial harm to Globe Minerals Mining Inc.
The case further alleges criminal collusion involving Kragness, Garmo II, and Fahn Garmo in the forgery of mineral exploration documents related to Greenstone Resources Liberia Ltd. They are accused of using these forged documents to falsely obtain or transfer rights tied to Kalisma Resources Inc.
Key evidence cited includes fraudulent Mineral Exploration Licenses (MEL 6100051392 and MEL 7011524) and the unauthorized use of proprietary geological reports, specifically the NI 43-101 Technical Report and Feasibility Studies dated April 9, 2024, and May 9, 2017. These studies, fully financed by the complainant, were allegedly used by Kragness for unauthorized business transactions with Ace Global B.V.
In a prior instance dated April 17, 2022, Cllr. Garmo II allegedly certified that Kragness was the sole owner of Sinoe Mining and Exploration Inc. and held the licenses for Kalisma Resources Inc. However, investigators have since confirmed both claims were false at the time of certification.
Investigators contend that these certifications were intentionally fraudulent, forming part of a sophisticated scheme to divert company assets and mislead international investors.
