Two women have been charged over the controversial QVSE investment platform, which collapsed after thousands of Kenyans reportedly put millions of shillings into what they believed was a securities trading scheme.
Ruth Kimeu and Mary Mwangangi were charged with operating an unlicensed investment scheme and fraudulently inducing members of the public to trade in securities.
The two pleaded not guilty to the charges and were each released on a Sh200,000 bond.
QVSE had attracted thousands of participants, with members allegedly told that their money was being invested in stocks and that they would earn dividends from the investments.
Members were required to pay at least Sh65,000 to join, while some reportedly invested as much as Sh260,000.
The platform also rewarded members who recruited more people, with participants appearing to earn higher returns as their networks grew.
Some early members were able to withdraw substantial amounts of money, in some cases running into millions of shillings. The payouts helped build confidence in the platform and encouraged more people to invest.
For many participants, the withdrawals appeared to confirm that QVSE was a legitimate investment operation.
However, the platform later collapsed, leaving thousands of investors unable to recover their money.
The recruitment-based model and returns offered to participants had raised questions over whether the operation resembled a pyramid scheme, where returns to existing members depend heavily on money coming in from new recruits.
The collapse has left affected investors counting losses after committing savings and other funds to the platform.
Kimeu and Mwangangi will now face trial over the allegations, with prosecutors expected to present evidence on how the scheme operated and how investors were recruited.
The two have denied the charges.
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