A law firm has written to the Director of criminal investigations(DCI) George Kinoti calling for investigations against Cytonn High solutions LLP (CHYS) and the Capital Markets Authority(CMA) over suspected fraud of Sh44million from investors.
In a letter dated December 16, lawyer Nicholas Orinda of ONE & Associates LLP, wants Kinoti to investigate them on claims that they exposed his clients on huge financial risks.
He says 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 Directorate of Criminal Investigations (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 states in the letter.
He further says that his clients have a reason to believe that the conflicting accounts and responses by Cytonn High Yield Solutions LLP (CHYS) points to a potential fraud in 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.
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.
It is worth noting that while our clients entered into contracts with Cytonn High Yield Solutions (CHYS) LLP, subsequent correspondences and deposits of the sums aforementioned involved several other entities not privy to the contract including but not limited to Cytonn Project Notes LLP, Cytonn Investment Management PLC and Cytonn Investments.
He says his clients are available and ready to record statements pursuant to Kinoti’s response and directions in the matter.
The letter has been copied to the ODPP, EACC, CMA and CHYS.
Daniel Mainye one of directors from Cytonn said he will peruse his files and see whether that letter was received.
he added that if it was received,the company legal team will respnd to it.
“There is no malice on our side because we have been in constant communication with our clients, there are some agreements we made with them in case of natural calamities and they all understanding that we are going through Covid-19 pandemic, They should exercise little patients as we are working on the pending matters, “said Mainye on phone Interview with JusticeToday.co.ke reporter.