This archive report was first published on 27 September 2019.
On September 27, 2019, the Capital Markets Authority (CMA) issued a warning to the public against participating in online forex trading through Interweb Global Fortune and its director Manasseh Kuria Karanja.
The CMA's investigation revealed that Interweb Global Fortune had been purporting to carry on business as an online forex trading broker and money manager without a valid license.
According to CMA Chief Executive Paul Muthaura, the company's business model features traits of a pyramid or Ponzi scheme, where investors are promised high returns or dividends that are not realistically available through credible investment products.
Investors have also been encouraged to recruit other people for a commission, Muthaura observed.
As a result, the CMA, in collaboration with other law enforcement agencies, has frozen the company's bank accounts pending further inquiries.
The investigation further revealed that Interweb Global Fortune had misled investors by claiming that it had applied for a license from the CMA. However, the Authority has never received any application for a license to operate as an online forex broker or money manager from the Interweb Global Fortune or its directors, Muthaura added.
The CMA urged members of the public who have been affected or are aware of such illegal online foreign exchange to report to the Authority's Capital Markets Fraud Investigation Unit.
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