The Capital Market Authority (CMA) fraud department says it received 24 cases in the last year where investors were approached by the fraudsters mostly in cases of successions in courts. The fraudsters tried to alter beneficiary details as well as fraudulently lure the latter to sell the shares.
Among the 24 cases, ten cases were concluded and suspects are awaiting trial in court. One has been recommended for enforcement while eight of the cases are the pending arrest of the suspects and the remaining two are at initial stages of investigations.
Through the authority’s website, whistleblowers are required to explain any suspicious activity by briefly describing the improper, activity and how they know about it.
CMA over the recent has been years been tough on fraud-related issues, where the authority early in the year fined former National Bank of Kenya board members and senior managers for misrepresenting financial statements and embezzled approximately Sh1 billion from the lender during their tenure.
The Capital Market Fraud Investigations Unit (CMFIU) which was formed in May 2009 works closely and in collaboration with the Kenya Police and Capital Markets Authority (CMA) in order to consolidate the investigations of all securities-related fraud cases under one roof.
The authority is this week taking part in the annual World Investor Week (WIW) 2018, as part of it’s Education and Public Awareness Strategy.
A smart investor understands the risks that are associated with initial coin offerings and crypto-assets in general and is careful in deciding whether to invest in these products @CMAKenya #IOSCOWIW #WIW2018 @IOSCOWIW pic.twitter.com/pkcJHNdaDL
— Kenyanwallstreet (@kenyanwalstreet) October 3, 2018
