The Capital Markets Authority (CMA), in the ongoing investigation into trading on KenolKobil stocks, has regained illegal gains amounting to 458 million shillings.
According to the authority, the regained funds are tied to 90 percent of suspicious trades identified via 14 accounts that were frozen in October 2018 to pave way for investigations. The funds will be paid into the Investor Compensation Fund.
Through a statement, CMA noted that several investors had been urged to carry out trading on the non-public securities before Rubis Energie publicly declared its interest in taking over the petroleum company at a premium.
Rubis Energie was set to announce the takeover of 100 percent ordinary share capital of KenolKobil at a premium on October 24, 2018.
“The investigations relating to the balance of the accounts flagged in connection with suspicious trading activities are ongoing,” read the statement.
Furthermore, after the review of findings and recommendations from the investigation, the authority stated that it had made a decision for the inception of enforcement proceedings against Andre DeSimone, Kestrel Capital Executive Director; Charles Field-Marsham, Kestrel Capital Chairman & Founder, and their stockbroking agent, Aly Khan Satchu, through issuing Notices to Show Cause.
CMA said that the recipients of the Notices to Show Cause have been granted an opportunity to formally respond to allegations made against them and to appear before the CMA Board to make any submissions before a determination is made.
The findings from the investigation, however, did not determine evidence of potential misconduct with regards to David Ohana, KenolKobil’s Chief Executive, and therefore no enforcement proceedings will be initiated against him.