ADVOKS GLOBAL · KENYA
Prevention of Fraud (Investments) Act
16. Fraudulently inducing investment
Edition: 2023-12-11 · Not commenced
16. Fraudulently inducing investment
Any person who, by any statement, promise or forecast which he knows, or ought reasonably to know, to be misleading, false or deceptive, or by any dishonest concealment of material facts, or by the reckless making of any statement, promise or forecast which is misleading, false or deceptive, induces or attempts to induce another person—(a)to enter into or offer to enter into—(i)any agreement for, or with a view to, acquiring, disposing of, subscribing for or underwriting securities or lending to or depositing money with any co-operative society or building society; or(ii)any agreement the purpose or pretended purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuation in the value of securities; or(b)to acquire or offer to acquire any right or interest under any arrangement the purpose or effect or pretended purpose or effect, of which is to provide facilities for the participation by persons in profits or income alleged to arise, or to be likely to arise, from the acquisition, holding, management or disposal of any property other than securities; or(c)to enter into or offer to enter into an agreement the purpose or pretended purpose of which is to secure a profit to any of the parties by reference to fluctuations in the value of any property other than securities, shall be guilty of an offence and liable to imprisonment for a term not exceeding seven years, or to a fine not exceeding one hundred thousand shillings, or to both such fine and imprisonment.