When an investment firm promises returns of up to 200%, heads are bound to turn. Questions are raised and potential investors start itching for a taste of the action.

Dyntrust International, a locally-registered company, claims to offer up to 200% returns on investments. But what’s the catch?

According to the firm’s agents, all an applicant needs is at least KES 10,000 in order to apply for a Bronze, Silver, Gold or Platinum Plan. Bronze Plan members receive monthly returns of 10% and the principal amount is refunded after one year.

Silver Plan members receive a 40% return after three months and the principal sum is also refunded after one year. The Gold Plan promises a 90% return and the principle amount is refunded one year later. Long term investors can opt for the Platinum Plan which has returns of 200%, depending on the time-frame set by Dyntrust.

The minimum registration fee is KES 1000 or 5% of the money to be invested for higher cash deposits as determined by the Company.

Deposits are paid by check in the presence of Dyntrust lawyers though agents report that applicants can be accompanied by their own lawyers

The Company assures applicants that user accounts data is protected by a Secure Sockets Layer Cryptographic Encryption which is Hacker-Proof and DDoS protected. Furthermore, Dyntrust International states that all user data is protected by a Non Disclosure agreement, which is a part of DynTrust Terms of Service Agreement.

Too Good To Be True?

Dyntrust International claims to be a registered firm under the Companies Act. According to Capital Registrars, the first step in forming such a business is to register the proposed company name with the Registrar of Companies. This is done at the Attorney General's Chambers in Nairobi.

If the name is available, the next step is to file a Memorandum and Articles of Association with the Registrar. During this phase, a process which can last for up to 3 days, the applicant pays a stamp duty. If all documents are in order, the Registrar finally issues a Certificate of Incorporation.

The problem with this is the fact that the office of the Registrar only checks for locally available names. Company names similar to those in foreign countries may be registered locally.

In any case a company going by the name of Dyntrust was recently blacklisted by the International Financial Services Commission of Belize (IFSC) on August 17^th, 2012. Belize is a country located in the North-Eastern coast of Central America, next to Guatemala.

Dyntrust  (Dynamic Trust in full) was the subject of a warning notice from IFSC Director General, Gian Gandhi. The notice states the following:

“It has come to the notice of the International Financial Services Commission of Belize (IFSC) that an entity calling itself Dynamic Trust (DynTrust) is claiming to be an ‘offshore international company chartered in Belize’. This entity is offering investment platforms for trading in securities on its website www.dyntrust.com (The site has since been inactive). No such company exists in our records and the representations made by it to that effect are false and fraudulent.”

According to their company website, Dyntrust International (Kenya) is, indeed, affiliated with Dyntrust of Belize. However, a recent exchange between the firm’s agents appears to be conflicting with their online company profile.

Speaking during several telephone interviews with Pesatalk, Dyntrust agents were not aware of subsidiaries abroad, much less Belize.

When asked where the money is invested, agents said deposits are used on projects such as real estate, businesses and stocks. “We fund property development,” said one of the firm’s agents, though she was reluctant to leave her name. Further probing yielded little results as the group did not reveal the actual nature of their projects.

“We at Dyntrust international only invest in assured investments that are long, medium and short term with the least risk. We also provide you with a registered contract binding us to the terms of your investment,” says a statement from the firm’s FAQ section.

The firm, which was started about 2 years ago, is tagged by Mocality (Kenya’s Largest Business Directory) as an Investment Company.