Investors storm VIP Portal forex bureau offices in Limuru to present their complaints to the management recently. PHOTO | FILE
By BRIAN WASUNA, bwasuna@ke.nationmedia.com
In Summary
- Kiambu-based VIP Portal comes under police probe for alleged deposit taking and illegal trading in funds.
- Between October 2013 and May 2014, VIP Portal account with Family Bank had received a total of Sh1.08 billion from the public as deposits, according to a police brief.
- Two of the frozen accounts are registered in the names of VIP Portal subsidiaries, VIP Sacco and VIP Institute of Trading.
A forex trading broker whose bank accounts were
frozen over alleged involvement in pyramid scheme-like operations has
gone to court seeking orders to have the accounts reopened.
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Kiambu-based VIP Portal is seeking the court’s assistance to
have its three accounts held at Family Bank’s Limuru branch reopened
even as it remains under the watchful eye of the anti-banking fraud
police.
VIP Portal’s accounts were frozen after it was
accused of operating a pyramid scheme and of defrauding Kiambu residents
of millions of shillings — a matter that is still under police
investigation.
Two of the frozen accounts are registered in the names of VIP Portal subsidiaries, VIP Sacco and VIP Institute of Trading.
VIP Portal wants the account freezing orders issued
by the Chief Magistrate’s Court quashed, arguing that it was not given a
fair hearing before the determination was made.
The forex trading broker says its decision to go to
court was informed by the bank’s refusal to reopen the accounts despite
numerous requests.
VIP Portal says it had in a letter dated May 29
2014 demanded that the bank immediately reopen the accounts and admit
liability to compensate it for the arbitrary, unlawful and malicious act
of closure of the accounts but the bank rejected the demand.
High Court judge David Onyancha ordered the
applicant to serve Family Bank with the court papers and set the hearing
for October 8.
VIP Portal also wants Family Bank restrained from
freezing its accounts or “in any way interfering with the applicant’s
bank accounts”.
An earlier order issued by the Chief Magistrate’s
Court shows that Hassan Hirbo, an investigator with the Banking Fraud
Investigation Unit, was granted permission to look into VIP Portal’s
accounts.
The order gives both Family Bank and Barclays Bank the green light to freeze VIP Portal’s accounts with the two banks and to give the investigator access to the same accounts.
Saint Vincent and the Grenadines
The forex trading website operator is registered as an intern
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