The Capital Markets Authority (CMA) told the court it learnt of the communication between Mr Satchu and Mr Andre DeSimone, the CEO of Kestrel Capital, after it confiscated their phones and laptops on January 15. The regulator suspects that Mr Satchu recommended to Kestrel unsolicited clients who later purchased huge quantities of KenolKobil shares based on the takeover information that was not in the public domain. The firm has the ability to recover altered or deleted electronic data that is now helping the CMA build insider trading case against three CEOs. The CMA suspects the 66.8 million suspect shares worth Sh948.5 million traded between October 15 and October 23 were based on non-public information on the takeover. The authority suspects Mr Satchu had prior knowledge of the deal before recommending five traders to Kestrel to buy KenolKobil shares.

Source: Daily Nation January 31, 2019 19:04 UTC