Exposed

Lawyer Wants Cytonn, CMA Probed For Exposing Many Investors Clients To Huge Financial Risks

Loading...

A law firm has written to the DCI calling for investigations against Cytonn High solutions LLP (CHYS) and the Capital Markets Authority(CMA).

In a letter dated December 16, lawyer Nicholas Orinda of One & Associates said DCI boss George Kinoti should probe the two over suspected fraud of Sh44million from investors.

Orinda said Cytonn and CMA exposed his clients to huge financial risks.

He said he has instructions from his six clients that on diverse dates they executed contracts for investments with Cytonn company of Sh44,046,582.

“Besides, failing to honor obligations stipulated in the said contracts upon maturity of the investments, CHYS has ignored notice over intentions to file a report with the DCI to no response for purposes of investigating its conduct in handling our clients’ investments in a manner our clients’ have reason to believe has put the said investments at a huge risk”, Orinda’s letter stated.

The lawyer argued his clients have a reason to believe that the conflicting accounts and responses by Cytonn High Yield Solutions LLP (CHYS) point to potential fraud in the management of the said investments.

According to him, his clients want CHYS to pay a total of Sh44,046,582 to his clients together with interest.

The lawyer further says that in September 2020, the Capital Markets Authority (CMA) had raised concerns that one of the funds managed by Cytonn High Yield Solutions LLP and debt security raised from investors under the name and style of Cytonn Project Notes LLP.

Loading...

It posed risk to the investing public pursuant to complaints filed against it for failure to pay Kenya Shillings 122.8 million upon maturity of the funds.

“Pursuant to the mandate under the Police Service Act No. 11A of 2011 the Directorate of Criminal Investigations (DCI) is charged with the responsibility to not only maintain law and order, conduct forensic analysis but also undertake investigations on serious crimes including but not limited to economic crimes and organized crimes”, the letter reads.

Orinda says that his firm instruction is to seek the intervention of the DCI office in investigating both CHYS for possible fraud and the Capital Markets Authority (CMA) respectively.

The two are charged with the prime responsibility of supervising, licensing, and monitoring the activities of market intermediaries under the Capital Markets Act CAP 485A Laws of Kenya for possible oversight in its regulatory duties that exposed his clients and several other unsuspecting investors to huge commercial risks.


There's no story that cannot be told. We cover the stories that others don't want to be told, we bring you all the news you need. If you have tips, exposes or any story you need to be told bluntly and all queries write to us [email protected] also find us on Telegram
Loading...

Related posts

The Billion-Shilling Threat to Banks by Young Techies in Nairobi Estates

nairobi-exposed

Beware: DCI Warns Against Buying Electronics From These Dealers

nairobi-exposed

Woman Threatens To Spill Bomet Governor’s Dirty Secrets

nairobi-exposed

Aim Global Limited Crooks Gets In Trouble For Trying To Con A KDF Officer Sh317K

nairobi-exposed

Aga Khan Hospital In Kisumu Accused Of Killing Their Own Nurse Caroline Mwenesi

nairobi-exposed

Ruto’s ‘Donations’ Tactics Exposed As Foot Soldier Shadrack Mose Releases Sh2M He ‘Donated’ After Two Years

nairobi-exposed

Leave a Comment