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Stockbroker jailed 7yrs for shares fraud



A stockbroker and former managing director of First Alstate Securities Limited, Mr Tajudeen Folaji has been sentenced to seven years imprisonment by the Lagos State High Court over fraudulent sale of his client’s shares.

The Lagos State High Court presided over by Justice Kudirat Jose found Folaji guilty of unauthorized sale of shares and stealing for fraudulently converting 31,886,200 units of IPWA Plc shares worth N331,297,618 belonging to an investor on April 3rd, 2008.

In addition to the imprisonment, the court has directed the Economic and Financial Crimes Commission (EFCC) to trace and liquidate properties belonging to the convict in order to restitute the investor while imposing a N20 million fine on First Alstate Securities Limited where he was the managing director and dealing clerk.

Folaji studied economics and became a member of the Chartered Institute of Stockbrokers in 1996, he worked as a banker before joining First Alstate Securities Limited in 2004.
Securities and Exchange Commission (SEC), which had investigated and transferred the case to EFCC, stated that the successful conviction was a testament to the excellent collaboration between the SEC and the EFCC to advance the goal of investor protection.

Read also: Woman jailed 8 yrs for deceiving partner with fake penis

SEC pointed out that following complaints against Folaji by the affected investor, the Commission launched a detailed investigation that revealed evidences of the infractions committed. The Commission consequently suspended the license of his firm on April 6, 2010 and transferred the case to the EFCC to prosecute the criminal element of the case.

A report had indicated that the EFCC was investigating 10 stockbroking firms and 12 individual stockbrokers and officials as part of a large-scale crackdown on shares fraud that had seen 31 stockbroking firms and several stockbrokers internally investigated and sanctioned by the Nigerian Stock Exchange (NSE).

The report indicated that two official reports on shares fraud, also known as unauthorised sales of investors’ shares, that the NSE had invited the EFCC to further investigate and prosecute 12 stockbroking firms and 21 stockbrokers and officials, who were primarily indicted by the internal investigations of criminal financial fraud.

The EFCC has already concluded investigations and charged two stockbroking firms and nine persons to court while the anti-fraud agency was investigating 10 stockbroking firms and 12 persons connected with the firms or individually cited for shares fraud.

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