Proshare NI
June 24, 2009 at 12:14 GMT
Two (2) unregistered Stockbroking firms Boyte Investment and Consult Limited and MDF Global Investments Limited have conspired to defraud investors who are employees of one of Nigeria’s Telecoms company name (withheld) N2.4 million worth of Investment and Allied Assurance shares.
The two companies from Proshare NI’s investigations show that they are posing as Dealing Members of the Nigerian Stock Exchange (NSE) to perpetrate their act.
Proshare NI can confirm that from the recent Factbook of the NSE, the two (2) companies are neither registered as Dealing Members of the Stock Exchange; therefore are not empowered by Law to act as Stockbroking firms.
It is also noteworthy to know that MDF Global Investments Limited that claims to operate from 23, Bishop Oluwole Close, Victoria Island area of Lagos; does not actually exist.
Proshare NI visited the address to clarify issues regarding to the N2.4 million fraud which was perpetrated between both companies, but discovered that Messrs F.O.A Ike’s MDF Global Investments office address was fictitious.
The security men and other people in the neighbourhood confirmed that a company by name MDF Global Investment does not exist.
This Olamitunji confirmed to Proshare NI following a visit to Boyte Investment; that Messrs Ike does not have a fixed address; but just a Jobber hustling to make ends meet.
Also Proshare NI can confirm specifically that Boyte Investment apart from not being a Dealing Member of the Stock Exchange did not also register with the Securities and Exchange Commission (SEC) before operating as a Capital Operator.
Olamitunji who is the Managing Director (MD) of Boyte Investment confirmed that indeed they intended registering with SEC to enable the company do business as a Capital Market Operator.
The three employees of the Telecoms Company that was defrauded include Lucky Ubani who paid N1.4 million, Rotimi Olubade N700, 000 and Romanus Ugwu N300, 000.
However, Proshare NI gathered that Ugwu has left the Telecoms Company for another job in Kano and was only paid N100, 000 to be balanced N200, 000.
A letter signed and dated April 03 2009 to the Chairman Economic and Financial Crime Commission (EFCC) and made available to Proshare NI in Lagos Nigeria by the defrauded investors reads thus:
“We write to bring to your attention fraud done by two stockbrokers Messrs Ike and Abijo of MDF Global Investments Limited and Boyte Investment and Consult Limited respectively.
Sometime in March 2008, Mr. Ike of MDF Global Investments Limited, 23 Bishop Oluwole Close, Victoria Island, Lagos offered Lucky Ubani, Romanus Ugwu and Rotimi Olubade Investment and Allied Assurance Plc (IAA) shares at the rate of N1.40 per share.
Mr. Ike affirmed that they were acting on behalf of a Director of the company and assured that whatever quantity that we might subscribe shall be transferred to us through the CSCS platform upon listing the company on the Nigerian Stock Exchange. On the strength of this assurance, we issued (three) cheques totaling N2.4 million”
A First City Monument Bank (FCMB) Victoria Island Oyin Jolayemi cheque of N1.4 million belonging to Joseph Lucky Ubani was made available to Proshare NI with number 005-204 dated March 13 2008 written in the name of MDF Global Investments Limited.
Proshare NI observed that F.O.A Ike signed and collected the cheque on the same date of March 13 2008 and wrote his address as 29 Bishop Oluwole Street Victoria Island contrary to the 23 Bishop Oluwole Close, Victoria Island it furnished the three investors as the address of MDF Global Investment office.
Paragraph four (4) of the letter to the EFCC states thus: “Following the persistent pressure from the three (3) of us, Mr. Ike introduced Mr. Abijo Olamitunji of Boyte Investment and Consult Limited, St. Peters House, 9th Floor, 3 Ajele Street, Off Broad Street, Lagos as the main contact person on the IAA transaction.
At this period, the price of IAA had dropped from N2.80 to 90Kobo. He offered to transfer exact quantities of shares that we bought as indicated above to us but at the rate of 90Kobo. We rejected it as this amounts to significant loss of our investment” the letter states.
Proshare NI gathered that after a protracted negotiation with all parties present, the following resolutions were reached.
The first is that Messrs Ubani and Olubade would convert their earlier deposit for subscription of Geo-Fluids Private Placement at a minimal loss due to price differential.
Second Mr. Ugwu insisted on having his money back; which Olamitunji promised to refund to him within two (2) weeks of the said meeting.
Ubani further affirmed that upon confirmation by Olamitunji that the Geo-Fluids allotment was done in February 2009, “we contacted the Registrars to the offer; Afribank Registrars for extraction of our share certificates, after three days of thorough review of Geo-Fluids shareholders register, our names were not on the Registered list of shareholders, indicating that our forms were not submitted to the Registrar” Ubani said.
Following this development, Proshare NI visited Olamitunji of Boyte Investment who confirmed that he was the one who took the money from Ike to help buy the IAA shares from Transglobe Investment & Finance Company Limited (Transglobe).
“You people should forget about Ike, he is just a jobber struggling to survive, do not worry I will handle the issue and make sure that I transfer the remaining shares of IAA to Ubani from Transglobe” Olamitunji said.
As earlier reported, Transglobe has been suspended February 2009 on all Capital Market activities by the Securities and Exchange Commission (SEC).
All effort by Proshare NI to clarify the issue with Mr. Ike of MDF Global Investment as at the time of posting this story proved abortive.
Following a persistent calls to Olamitunji on the transfer of the shares, a CSCS statement evidencing the transfer of 378,500 units of IAA Shares was forwarded to Ubani, on the March 03 2009, leaving a balance of 621,500 units.
Proshare NI gathered from Ubani that the only condition for accepting the IAA Shares is the transfer of the entire 1.0 million at once and not the 378,500 units Olamitunji forwarded a Central Securities Clearing System (CSCS) statement evidencing the transfer of same.
We also gathered that at many occasions Olamitunji had always promised to credit the CSCS account with the amount of units of shares purchased, or refund money, and till date nothing had been done.
Olamitunji had confirmed to Proshare NI that he has made a case with Transglobe to transfer the IAA shares to the investors and they promised to hold a Board meeting three weeks back and thereafter the shares would be transferred to Ubani and others.
Proshare NI as at the time of filling in this report has not meet with Transglobe to confirm this issue claimed by Olamitunji.
Olamitunji has declined to confirm the status of the meeting of the Board of Transglobe in respect of transferring the IAA shares to the investors.
“I will get in touch with you and brief you I want to call the MD of the company and confirm about the meeting” he said.
He also confirmed to Proshare NI his intention of stepping down as the MD of Boyte Investments.
Ubani and the other investors are praying that the EFCC should intervene in the matter by recovering the N2.4 million from Messrs Ike and Olamitunji.
