NSE, EFCC Stop N20m Capital Market Fraud

• NSE, EFCC Stop N20m Capital Market Fraud

The Nigerian Stock Exchange and the Economic and Financial Crimes Commission have succeeded in aborting a N20m fraud targeted at the estate of an investor in the market, the late Prof. David Osifo.

The development was contained in a letter by the deceased’s wife, Prof. Bola Osifo, to the NSE, commending the two organisations for helping the family to recover the sum of N20m being her late husband’s investment.

In the letter, she wrote, “On behalf of the Osifo family, we will like to thank the NSE for the dedicated effort in ensuring the stolen shares were reimbursed to my husband’s estate.”

The late professor had equity investment to the tune of N20, 176,852.19 in the capital market but was said to have been illegally appropriated by some fraudsters.

Upon the detection of the crime, the wife of the deceased contacted the NSE.

The Exchange, according to the statement, was said to have swung into action and collaborated with the EFCC to recover the sum in full.

The collaboration between the NSE and the EFCC to prevent and combat abuse and infractions by players in the capital market was said to have yielded fruit.

The NSE in October 4, 2013 signed a Memorandum of Understanding with the EFCC to tackle market infractions and abuse. This partnership had successfully opened direct lines of communication and information sharing with the EFCC for reporting and investigations of incidents leading to a more proactive law enforcement and swift recovery of stolen securities.

To further protect investors, the NSE had set up the Investors Protectors Fund to compensate claimants for pecuniary losses suffered by them as a result of wrong doing by certain dealing member firms of the Exchange. The establishment of the IPF is pursuant to Section 197 of the Investment and Securities Act 2007. So far, 158 investors have been compensated

Speaking on the establishment of the IPF, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, who is also a trustee of the IPF, described it as a milestone.

“This milestone gives me great pleasure as it affirms our commitment to the continuous development of initiatives that will bolster confidence in the capital market,” he said.