The Capital Markets Authority has fined a trader Ksh166.9 million and also barred him from being appointed to any public listed company for 10 years.
David Tumaini Maena was investigated for irregular trading of Government securities in 2016 and 2017.
During the investigations, CMA uncovered a scheme where fixed income dealers at investment banks, asset management firms and brokerage firms colluded with bond handlers to trade them ahead of orders placed by investors.
Maena was a key player in the scheme and used is position as a dealer in government securities to obtain over Ksh83 million.
The authority has also referred the matter to the Office of the Director of Public Prosecutions for consideration of criminal investigations.
The Asset and Recovery Agency has also been asked to trace assets bought with the illegal gains.
In addition, the CMA forwarded the case to the Institute of Certified Investment and Finacial Analysts for disciplinary action following his professional misconduct.
In January, the officers from the authority seized the personal ICT devices (Mobile phones, laptops, and Desktop computers) of the KenolKobil CEO David Ohana and other ranking officials after a raid at their offices.
The operation was conducted as part of an investigation of insider trading in the company’s shares before the announcement of a Ksh35 billion takeover in 2018.
The CMA is a regulatory body charged with the prime responsibility of supervising, licensing and monitoring the activities of market intermediaries, including the stock exchange and the central depository and settlement system and all the other persons licensed under the Capital Markets Act.
It plays a critical role in the economy by facilitating mobilization and allocation of capital resources to finance long term productive investments.
