Abdalla Mohamed Ali, Maalin Group of Companies Chief Executive Officer (CEO) has allegedly gone missing with Sh15 billion belonging to investors.
In a publication by People Daily, the company which is reported to deal with Forex trading in Nairobi had promised huge returns to its investors before the CEO went missing and his car found dumped at the Jomo Kenyatta International Airport (JKIA).
Apparently, he was reported missing for the last three days before his V8 land cruiser was found parked at the airport.
Additionally, it is reported that sitting Cabinet Secretary is also on the spot for aiding his escape out of the country.
According to the publication, the Investors risk losing all their money with different people giving accounts of events on what happened.
For instance, the scheme has been dubbed a Russian Pyramid Scheme involving powerful government officials including the deputy Inspector General of Police, Immigration officials, two prominent law firms, a middle east embassy in Nairobi and a senior politician from Northern Kenya.
An investor, Sheikh Abdulla Kulow while speaking to the local publication stated that he risks losing close to Sh200 million that he had invested in the trade.
He is quoted to have sold his three houses in South C Estate and used the money to invest in the scheme which has now turned foul.
“This is a huge blow to me and my family because this is what I have been depending on for the last years after I sold my apartments to invest in the scheme. The Government must make sure he is brought back to the country and return our money,” Kulow is quoted.
Other investors also bear almost similar complaints, with information indicating that earlier on Monday, March 16, 2020, a meeting was convened at a popular city hotel where the said victims organized a fundraiser to aid in tracking the CEO.
Additionally, on Sunday, Senior Counsel Ahmednasir Abdullahi through his Twitter handle unmasked the syndicate with a warning that it had collapsed.
“A huge Ponzi scheme went under last week in NAIROBI…losses are conservatively estimated at between American USD 65 to USD 80 million,” Abdullahi said, noting that the scheme was 8 years old. According to my sources, the Somali frontman was a commission agent,”read the tweet.
A HUGE PONZI scheme that was POPULAR with the Somali community in Kenya, Somalia & the Somali diaspora has gone UNDER last week in NAIROBI…losses are conservatively estimated at btw American $ 65 to 80 million…@rtnsomalitv @MoradNews @WehliyeMohamed. The SCHEME was 8 yrs old.
— Ahmednasir Abdullahi SC (@ahmednasirlaw) March 15, 2020
This syndicate comes barely weeks after another one involving Goldenscape Greenhouses was reported to have collapsed.
As reported by Kahawa Tungu, the agribusiness company was said to have failed to pay its investors since December 2019.
The firm also reportedly closed some of its offices in Nairobi and the Managing Director Mr Peter Wangai had gone under, with all his phones switched off.
The investors flooded their Company Facebook page demanding their dues, but the company remained mum over the issue.
“If they had paid people they would post of it. But since 27th they haven’t updated anything and haven’t responded to anyone’s post. Just observe. Can someone ask for a refund coz I don’t want this game I better put my money in a money market fund. They have failed (sic),” noted Faith Delina.
The sleuths from the office of the Directorate of Criminal Investigations (DCI) raided the firm’s Karen office following the fraud claims, with a manhunt set out for the CEO Peter Wangai.
Five employees who were in the office were rounded up before being grilled on the alleged fraudulent dealings, and several documents believed to contain crucial evidence seized.