sold out at 170-178 like 2-3weeks ago.

Henry Ngati Nugi:

Undertaking a purchase of 1,000 and 4,500
Kenya Orchards shares on 25 April and 15 August
2014 at Kshs. 6.55 and Kshs. 10.50 respectively
and subsequently selling the same mainly in
lots of 100 shares at progressively increasing
prices of between Kshs. 11.50 and Kshs. 190
on diverse dates between 20 August 2014 and
24 October 2014, and thereby occasioning an
artificially induced market price rally, leading
other participants in the market to purchase
the security on the mistaken belief that the
“inflated price” reflected a true value for the
underlying company contrary to the provisions
of Section 31 (7) (e) of the Capital Markets Act.

Conducting subsequent sales of Kenya
Orchards shares in lots of 100 at progressively
increasing prices of between Kshs. 11.50 and
Kshs. 190, whereby as the party dominating
sale of the shares, played a critical role in
determining the prevailing price for the shares
on diverse dates between 20 August 2014
and 24 October 2014, causing an increase in
the price of securities with the intention of
inducing other persons to purchase securities
in the company contrary to the provisions of
Section 32F (1) (a) of the Capital Markets Act

Enforcement Action

• Disgorgement of all the capital gains earned
amounting to Kshs. 374, 926.75 pursuant to Section
11 (3) (cc) (i) and Section 25A (2) of the Capital Markets
Act
• An Enforcement directive to ensure that the amount
of disgorged profits amounting to Kshs. 374,926.75
is paid to the Investor Compensation Fund Bank
Account;
• A Freeze Order on the Investor’s CDS Account in
accordance with Section 11 (3) (t) and (u) of the
Capital Markets Act effective until the disgorged
amounts are fully settled.

Standard Investment Bank
Effecting and thereby facilitating numerous
transactions in the CDS account of an Investor
who was selling Kenya Orchards Ltd shares
and leading to increasing prices contrary to
the provisions of Section 31 (5) of the Capital
Markets Act.

Playing a dominant role as the selling broker
of Kenya Orchards Ltd shares on behalf of an
investor who undertook trades which led to the
price rally of the shares contrary to Regulation
24 (d) of the Capital Markets (Licensing
requirements) (General) Regulations.

Enforcement Action
• Pursuant to Section 11 (3) (cc) (ii) and Section 11 (3) (w)
of the Capital Markets Act, a disgorgement order over
the illicit commissions amounting to Kshs. 9,004.93.
• A financial penalty pursuant to Section 25A (1) (a)
(vi) of the Capital Markets Act amounting to Kshs.
758,858.43.
• A regulatory caution pursuant to Section 25A (1) (a) (i)
of the Capital Markets Act to ensure that it maintains
due regard for its obligations under the provisions of
the capital markets regulatory framework on market
manipulation;
• An enforcement directive under section 11 (3) (i)
of the Act that the firm conducts an independent
systems audit to establish the status of compliance of
their Operating Trading System with their regulatory
framework; and submit the System’s Audit Report to
the Authority.

Wazua knew about the crooks years ago