CMA Warns Public Against 15 Unlicensed Entities Allegedly Soliciting Investment Funds

The Capital Markets Authority (CMA) has cautioned Kenyans against dealing with 15 entities accused of offering investment services or soliciting funds without the required licences and regulatory approvals.

The regulator said the entities are allegedly disguising fraudulent activities as legitimate investment opportunities and urged members of the public to exercise caution before committing money to investment schemes.

In a statement, the CMA identified the entities as Global Investment Group (GIG), QVSE, Kore Exchange, Abacus Wealth Management, Brown Advisory Group, B Invest, Bitblock Capital Limited, Maliwave Investments and Monetrix Capital Investments.

The list also includes Twenty-four Hours Pro Expert Trader, Wealth Sharing Group (Opticoin), CBEX, Just Markets, Ultima Cryptocurrency and Lukman-trust Fund.

Entities Under Investigation

The CMA said the named entities are the subject of active investigations being conducted by the Directorate of Criminal Investigations (DCI) in collaboration with the Authority and other law enforcement agencies.

The regulator urged members of the public who may have interacted with the entities or been affected by their activities to cooperate with investigators and report the matter to the nearest DCI offices.

“The Authority strongly cautions the public against dealing with entities and persons disguising their fraudulent activities as investment opportunities,” the CMA said.

The warning comes amid continued concerns over unlicensed investment schemes and financial fraud targeting members of the public seeking opportunities to grow their savings and investments.

CMA Urges Investors to Verify Licences

The CMA has repeatedly advised investors to confirm the regulatory status of an investment company or service provider before depositing funds or entering into an investment agreement.

Investors are encouraged to establish whether a firm has the appropriate licence or approval to provide the specific investment service it is offering.

The regulator maintains information on licensed and approved capital markets intermediaries to help members of the public distinguish regulated investment providers from unauthorised operators.

Financial Fraud Investigations

The CMA also hosts the Capital Markets Fraud Investigations Unit (CMFIU), a Kenya Police unit based at the Authority's offices.

The unit works alongside the CMA and other government agencies to detect and investigate suspected securities-related fraud and other financial crimes within the capital markets sector.

Under Kenya's capital markets regulatory framework, suspected violations can be investigated by the relevant authorities, with regulatory action and sanctions available where breaches are established.

Criminal cases may also be pursued through the appropriate investigative and prosecution agencies.

Public Advised to Exercise Caution

The CMA's latest warning highlights the risks facing investors as fraudulent schemes increasingly present themselves as legitimate opportunities to generate returns.

Members of the public are advised to conduct due diligence, verify licensing information and avoid transferring funds to investment providers whose regulatory status cannot be independently confirmed.

The Authority has urged anyone with information concerning the activities of the 15 named entities to report the matter to investigators.

The CMA's warning does not by itself establish criminal liability against the named entities; the allegations remain subject to ongoing investigations and any subsequent legal proceedings.