Investors seek release of Sh2.9m from businessman

Tuesday, December 17th, 2019 00:00 |
Milimani Chief Magistrate Francis Andayi. Photo/PD/FILE

Over 1,400 investors yesterday moved to court seeking the release of more than Sh2.9 million from a businessman accused of illegally running a forex business.

Appearing before Milimani Chief Magistrate Francis Andayi, the investors sought the reopening of the bank accounts held in Manasses Karanja’s name, a director of Inter-Web Global Fortune Limited that have remained closed for more than three months following a closure of the account by Central Bank of Kenya.

“We are seeking the release of funds directly to the investors as we do not know the circumstances under which the accounts were frozen,” said the investors.

Last week, the Nairobi court barred Karanja from accessing any funds held in his bank accounts or making transactions to any of his bank accounts following an application filed in court.

The accused was on October 2 this year charged with carrying out a business as an online broker without a licence.

Karanja is alleged to have been running an online business in which he invited members of the public to invest by depositing the funds with him in return for a monthly return of 20 per cent of the amount invested.

“The applicants having no doubt on the legality of the business in question, they invested in the business on diverse dates with funds totaling to Sh2, 910, 000,” a court application read.

The online broker is said to have paid the 20 per cent to the applicants for a while without fail.

He, however, failed to make the August monthly remittance and on inquiry, applicants learnt that he had been charged with illegally operating the business by the Capital Markets Authority. 

More than three months down the line, the authorities are yet to inform the applicants whether they will recover their money. 

Since the DPP has not yet filed a response to the application by yesterday, the magistrate granted the prosecution a final chance to file their responses within 24 hours. The case will be heard today.

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