Lawyer wants Cytonn and CMA probed over sh44million fraud
A law firm has written to the Directorate of Criminal Investigation 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 and Associates said DCI boss George Kinoti should probe the two over suspected fraud of Sh44million from investors.
Nicholas Orinda said Cytonn and CMA exposed his six clients to huge financial risks after investing with Cytonn worth 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 stated that his clients have a reason to believe that the conflicting accounts and responses by Cytonn High Yield Solutions point to potential fraud in the management of the said investments.
Besides, the Layer added that in September 2020, the 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.
It posed risk to the investing public according to complaints filed against it for failure to pay Kenya Shillings 122.8 million upon maturity of the funds.
“According to the mandate under the Police Service Act No. 11A of 2011 the 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.
The letter has been copied to the ODPP, EACC, CMA, and CHYS.
Cytonn through their Brand manager Daniel Mainye, said that since the Covid-19 outbreak the company has performed poorly and affected their real estate.
“We agree that our investors invested with us but right now we are working on the issues. There were restructuring and our clients know that. Just exercise a little patience as we work on the issues and we will respond to our investors”, Mainye added.
