Seven Kenyans who have been under investigation for suspected insurance fraud have been arraigned at the Chief Magistrate’s court, Milimani. The seven include three former senior officials at Invesco Assurance Company Limited and four Compliant Insurance Agency directors.
They were charged following meticulous investigations conducted by the Insurance Fraud Investigation Unit of the Directorate of Criminal Investigations (DCI).
In a statement on Wednesday, May 21, DCI said that the seven include Invesco’s former Director, former Chief Finance Officer and former Accountant, alongside four Compliant Insurance directors.
According to the investigative agency, their arrest and subsequent arraignment came following investigations which commenced in September 2024 when officials at the Insurance Regulatory Authority (IRA) discovered a broad fraudulent scheme implicating them.
“Through a letter to the investigators by Policyholders Compensation Fund (PCF), IRA stated that in the course of taking over assets of Invesco Assurance Company Limited (under statutory management), they uncovered that the insurer was using a secret bank account registered in the name of Compliant Insurance Agency domiciled at M Oriental Bank (Sameer Business Park Branch) opened on 1st May 2024, with signatories to the said account being top management of Invesco Assurance Company Limited,” read part of the statement.
Investigations into Ksh309 million fraud at Invesco
DCI further said that all the collections of insurance premiums from 27 branches across the country were being remitted into the said bank account. Statements were then recorded from relevant witnesses and all relevant documents were collected.
The agency said that the evidence pieced together revealed that the then top management of Invesco Assurance Company Limited (Directors, Chief Finance Officer and an Accountant), between May 1, 2024, and August 15, 2024, siphoned a total of Ksh309 million through their respective M-Pesa accounts from the said account.
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A case file accompanied by all the evidence was forwarded to the Office of the Director of Public Prosecution (ODPP), who on perusal advised that the seven be charged with the offence of Insurance Fraud Contrary to Section 204B (2) as read with Section 204B (5) of the Insurance Act.
“Additionally, accused number four (4) to seven (7) were to face another charge of Stealing by Directors contrary to Section 282 of the Penal Code. All seven suspects were on Tuesday, May 20, arrested and placed in custody at Capitol Hill Police Station, ahead of their arraignment on Wednesday,” the statement adds.
Earlier on February 14, the Commissioner of Insurance extended the statutory management period for Invesco Assurance Company Limited for an additional six months, effective immediately.
Invesco’s statutory management extended by six months
In a notice, the Commissioner stated that the extension followed ongoing efforts to stabilize the insurer’s financial and operational position.
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The Policyholders Compensation Fund (PCF) was granted approval to continue to serve as the Statutory Manager during the period, ensuring that regulatory and operational matters are addressed as required by law.
“The Public is hereby notified that the Commissioner of Insurance, in exercise of his powers under Section 67C (2) of the Insurance Act, Cap 487, has extended the Statutory Management period for Invesco Assurance Company Limited for a further six (6) months, effective from 14th February 2025,” read the notice in part.
IRA had in August last year placed Invesco Assurance Company under statutory management and appointed PCF to oversee the functions of the beleaguered insurer.
In December 2023, the authority had placed the same firm under liquidation, a process that involved winding up business operations and selling assets to compensate shareholders and creditors.
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