CMFIU JAMES MUTUA INTRODUCTION MEANING Capital Market Fraud

CMFIU JAMES MUTUA

INTRODUCTION MEANING: C-apital M-arket F-raud I-nvestigation U -nit

THE UNIT The Unit is manned by officers from the Directorate of criminal Investigations. It was formed in the 2009 with an objective of Investigating all criminal matters affecting the Securities industry. The Unit can also investigate other allegations reported and forward the file to ODDP for direction. The common crimes undertaken by the Unit fall under the “FRAUD” bracket.

WHY INVESTIGATE • -We investigate for the following reasons: - v. To find out by evidence whether the alleged crime has been committed or otherwise. v. To enhance faith to our clients. v. To safeguard investors interests v. To boost the market industry

WHAT IS FRAUD. • Fraud is an act of deceit whereby the suspect makes the complainant believe that the transaction is genuine knowing very well that it is not. • It is thro’ this now the complainant losses while the suspect gains illegally.

SOME EXAMPLES OF FRAUD ARE: ØMaking document without authority. ØAlters a document without authority ØIntroduces into a document matters which if it had been authorized would change the meaning of the document. ØSigns a document without authority in the name of another person. ØFalsifies book records. ØPersonation. AND Theft of identity.

SOURCES OF INFORMATION • Brokerage firms. • Investment Banks • Listed Companies • N. S. E.

OTHER AGENTS WHO ASSIST IN INVESTIGATIONS üBanks üNational Registration Bureau üRegistrar of Companies üDocument Examiner.

PROCES OF INVESTIGATION. o. Work plan o. Identify the offence thereof. o. Identify the relevant section of Law o. Identify the required exhibits per the case o. Get to know the Modus Operandi of the suspect.

Ø BOOKS OF REFERENCE -P. C. CAP. 63 -C. P. C. CAP. 75 -E. A. CAP. 84

E N D Q & A