Bond trader Muhoro fined Sh208 million for illegal trading

The Capital Markets Authority has penalised bond trader Roderick Muhoro Sh208 million for profiting from irregular bond trading.

The fine is twice the amount of benefit Muhoro received from the illegal trade.
In addition, Muhoro has been banned from conducting bonds trading for a period of 10 years.

According to the investigations, Muhoro conspired with brokers to defraud investors in bond transactions undertaken between January 2016 and June 2017 through front running.

The conspiracy involved riding on privileged information not accessible to other investors to profit from the trading.
In partnership with the brokers David T Maena of CBA Capital and Stephen Njunge of African Investment Bank, the three created artificial arbitrage opportunities, thereby realising a capital gain of Sh104 million by taking advantage of the price differential before the client orders were executed.
The gains would later be shared between Muhoro and the fixed income dealers at brokerage firms in contravention of provisions of the Capital Markets Act.
The Authority is set to refer the matter to the Director of Public Prosecution for consideration of criminal investigations on market manipulation.
Also to be notified is the Asset Recovery Agency to trace and recover assets allegedly bought with illegal capital gains; and the Institute of Certified Public Accountants of Kenya for consideration of disciplinary action for professional misconduct.

https://www.the-star.co.ke/business/markets/2019-05-15-bond-trader-muhoro-fined-sh208-million-for-illegal-trading/

Our hardworking central kenyan people. Im proud of my fellow kiuks… @gashwin @LeoK leokimberly @sakwa kujeni plis

Umesahau @kyuktothecore .

this nigga is in a lot of shiet

Finally someone is being brought to book for securities offenses. This will add credibility to the financial markets.

Okay!.. Hata David T Maena we adopted him… Hokay!

I don’t trust the NSE , or anything related to it …

Hawaezi guza in-law wa Biwott

Maena is Luo. And BTW Maina is a name that is used across severl ethnic groups Kikuyus, Kalenjins, Kisiis, Luhyas and also Luos