Businessman Jimnah Mbaru has been directed by the High Court, alongside a South African Bank, to an investor over Sh418 Million after his investment bank conspired in a fraud.
The ruling came after the court established that Mbaru's investment bank, Dyer & Blair and the CFC Stanbic Bank worked in cahoots to illegally make millions from Mr Kiarie, a former director at the Kenya Commercial Bank (KCB).
Mr Kiarie was a customer of Dyer & Blair, who had invested heavily in the stock market before the scheme happened.
It is recorded that in April 2003, Kiarie met the then Dyer & Blair General Manager, Mohamed Hassan - current chairman of the National Bank of Kenya board of directors - and they agreed that he would invest Sh100 Million in the bond markets, among other places.
Justice Eric Ogola noted that it was at this particular moment that the two banks plotted a freeze on Kiarie's bank account, so that the reinvestment would not take place hence stall his money in the account.
“Just when the money was being received for the further re-investment, an investigation on the plaintiff’s account was commenced by the Central Bank of Kenya Fraud Investigation Unit and immediately, and allegedly in synchrony, and as if they were waiting for this, the first defendant unilaterally and unlawfully froze the plaintiff’s account, thereby rendering the reinvestment and access thereto impossible,” Justice Ogola was quoted by the Nation.
The court indicated that Dyer & Blair illegally withheld Kiarie's money as the two companies benefited from the interest gained from the deposited amount.
“The first defendant (Dyer & Blair) volunteered freezing the account by telling the Central Bank of Kenya Fraud Investigation Unit that following your inquiry,… we will also freeze the account until further instructions from yourself. This appears to have been a clever and mischievous act by first defendant (Dyer & Blair) to find a basis of alleging that the instructions - to freeze the account - came from CBK,” the Judge stated.
Justice Ogola directed Dyer & Blair and Stanbic CFC to pay Kiarie Sh300 Million plus interest for the 5 years his money had been froozen.
Mr Jimnah Mbaru is a former Nairobi gubernatorial aspirant, who lost The National Alliance party ticket to Kabete Member of Parliament Ferdinand Waititu.