MORE than Sh95 million has been recovered from fraudsters since the establishment of the capital market fraud investigations unit three years ago.
According to the Capital Markets Authority, the unit has received a total of 475 reported cases with a total of 32 arrests made and 45 cases filed in court since its inception in 2009.
"The total recoveries made by the unit from 2009 to May 2012 amounts to Sh95,703,159.00," said acting CMA chief executive Paul Muthaura.
The unit which is a partnership between CMA and the police was formed in May 2009 to consolidate investigations of all securities related fraud cases under one roof.
The unit is run by CID officers specialising in economic and cyber crime and was formed as a result of rising cases of fraud by capital market players. Most of the cases are historical and relate to thefts that took place between 2006 and 2009.
They mostly relate to manipulation of investors' accounts by brokers and stealing of shares of unsuspecting investors. The fraud unit is responsible for investigating the criminal offenses and where it is established that there is a basis for prosecuting, the cases are prosecuted by the prosecution department. CMA can also through the Attorney General's approval appoint private prosecutors.
Muthaura however said fraud cases are declining since the unit was formed because it is now possible to detect the fraudsters early enough. "Recently there are less cases," Muthaura said on the sidelines of a workshop on enforcement and prosecution in the capital markets.