Frauds & Scandals

SEC Suspends Aims Asset Management Ltd for Capital Market Defalcation

The Securities & Exchange Commission on Tuesday April 16, 2013 suspended Aims Asset Management Ltd for non-refund of the sum of N300, 000.00 deposited by an investor under a Portfolio Investment Agreement.
SEC Suspends Vision Trust & Investment Limited for unauthorized sale of Investor’s Shares

The Securities & Exchange Commission on Wednesday, April 17, 2013, suspended Vision Trust & Investment Limited, a stockbroker, and its sponsored individuals from all capital market activities.
Public Notice on Mr. Adim Jibunoh and Adewale Akinrele

The general public is hereby informed that Mr. Adim Jibunoh of Irving Asset & Management Co. Ltd and Mr. Adewale Akinrele of Cashcraft Assets Management Ltd collected the sum of N3,100, 000.00 from an investor with a promise to invest the sum in Investme
The N300bn Class Action Law Suit against a Nigerian Bank

The buzz on the street is rising on the imminent class action law suit against a leading Nigerian bank from customers who allegedly suffered humongous pecuniary losses due to fraudulent misrepresentations from the institution.
Ecobank Nig Plc suspended from all Capital Market Activities, Bank Reacts

The Securities and Exchange Commission (SEC) has suspended Ecobank Plc from acting as a receiving banker and from all capital market activities.The suspension is as a result of the role played by the bank in a complaint by Avil Services Ltd relating to a
State of Illoinois Deceived Bond Investors, settles SEC fraud charges over pensions

Washington, D.C., March 11, 2013 The Securities and Exchange Commission today charged the State of Illinois with securities fraud for misleading municipal bond investors about the state's approach to funding its pension obligations.
SEC charges Oppenheimer with misleading investors

The Securities & Exchange Commission today charged Oppenheimer & Co. with misleading investors as to the value of its private equity investments.
Indian Govt Says Cadbury Used Phantom Factory to Dodge $46m Taxes

India has accused Cadbury PLC of dodging about $46 million in taxes by pretending to produce candy at a factory that didn't exist.
Understanding the use of public censure in the capital market

As the market continues its paradigm shift assimilation phase, arising from the compliance disclosures from the Nigerian Stock Exchange (NSE), and especially over its decision to use public censure as both a teachable moment and a deterrent; it may be nec
NSE Sanctions three dealing members for market and price manipulation

The Disciplinary Committee of the National Council of The Nigerian Stock Exchange (the Committee) met on 21 February 2013.
Teachable Moments: For Stealing Clients' Funds, CEO Sentenced to 50yrs

Russell Wasendorf Sr., the former CEO of commodities trading firm, Peregrine Financial Group who admitted to stealing clients' funds, was sentenced to 50 years in prison Thursday.
You Cannot Take Advantage of Others’ Trust – Example in $80 Million Ponzi Scheme

A California man pleaded guilty to operating a Ponzi scheme that took more than $80 million from 300 investors, many of whom he met at his church, federal prosecutors said.
How Access Bank’s Corporate Governance Triumphed over News Cycle

I am just going to assume that the news cycle ran out of things to cover in the financial market space for the news of a resignation, an appointment and a response to an observed infraction to become a major news item.
CBN - Maduka resigns from Access Bank Board. Fines Bank for Violating Lending Rules

In furtherance of its corporate governance compliance role, the Central Bank of Nigeria (CBN) has taken action to address violations of its rule as it affects members of the board of the quoted financial institution.
Delta Blacklists Union, Diamond Banks over Missing N1.1bn Tax

The Delta State Government Tuesday said it had blacklisted two banks for failure to remit N1.1billion tax revenue paid into its accounts several days after a multinational oil giant, Chevron Nigeria Limited, allegedly paid the money through the banks.
Three Men Arrested as Part of Libor Investigation

Three British men have been arrested as part of an investigation into the rigging of Libor interest rates, the U.K. Serious Fraud Office said.
Exchanges Get Closer Inspection

Federal securities regulators are stepping up oversight of stock exchanges as they scramble to catch up to trading advantages that some say have developed for sophisticated clients at the expense of ordinary investors.
Why Does the SEC Protect Banks’ Dirty Secrets?

Remember Richard Bowen? He is the former senior executive at Citigroup Inc. (C) who in November 2007 issued a clarion call to his colleagues and Citis board that a major credit-quality problem loomed for the bank.
Hong Kong firm to pay $14 million in Nexen settlement

The SEC alleged that Well Advantage had stockpiled shares of Nexen, based on confidential information that CNOOC was about to announce an acquisition of Nexen.
Dewey & LeBoeuf LLP – Judge Approves Settlement

A judge approved a $71.5 million settlement Tuesday with former partners of defunct law firm Dewey & LeBoeuf LLP, giving the green light to a plan whose speedy resolution could set a new benchmark for unwinding failed partnerships.
JPMorgan sued for fraud over mortgage-backed securities

The New York Attorney General has sued JPMorgan Chase for allegedly defrauding investors who lost more than $20bn (£12bn) on mortgage-backed securities sold by Bear Stearns.
UBS Whistleblower Gets $104 Million

The Internal Revenue Service awarded tax whistleblower and former UBS banker Bradley Birkenfeld $104 million for providing the agency with insider information
CBN under scrutiny over funds transfer by indicted oil firms

An unexpectedly lax stance by the Central Bank of Nigeria (CBN) over fund movements by customers in the banking industry, contrary to the guidelines on remittances via domiciliary accounts, may have put the apex under scrutiny, BusinessDay investigation
EFCC Indict Banks Of Sharp Practices

The Economic and Financial Crimes Commission (EFCC) on Monday indicted financial institutions in Nigeria over what the sleaze busting agency described as unprecedented sharp practices.
IG of Police reads riot act to fraudsters in capital market

The Inspector General of Police, Mohammed Abubakar, on Wednesday vowed to rid the Nigerian capital market of fraudsters saying the options open to fraudulent market operators is to either stop criminal activities or face the full wrath of the law.
US SEC issues first whistleblower award

The Securities and Exchange Commission announced Tuesday that it had granted the first whistleblower award under a new program to a witness who helped stop a multi-million dollar fraud.
Standard Chartered shares rise as US regulator drops licence threat

Standard Chartered shares jumped after the London-based bank fended off threats by a New York regulator to revoke its banking licence for alleged breaches of US sanctions that it is claimed left the financial system vulnerable to corrupt regimes and weapo
Standard Chartered Unit Accused of Illegal Transfers

New York's top financial regulator accused a Standard Chartered STAN.LN +2.05% PLC unit of running a "rogue institution" that "schemed" with Iran's government to hide more than $250 billion in illegal transactions for nearly a decade.
Court awards N2.5bn Judgement against Stanbic IBTC

The Federal High Court in Lagos ordered Stanbic IBTC Bank to pay a customer N2.5 billion for breach of contract. Justice Charles Achibong ruled that the bank acted "unwise and unprofessionally" when it sold the customer’s shares below the mandated N15 per
Exchange Notified of N164bn Judgment in Access Bank Plc V. Erastus Akingbola & Ors.

Access Bank Plc has notified The Exchange that pursuant to its acquisition and subsequent merger with former Intercontinental Bank Plc ("ICB"), Access Bank Plc assumed all interests in litigation matters involving ICB. It is against this b
HBOS whistleblower hits out at bank regulators

The Libor rate-rigging scandal that is currently engulfing the banking sector has led to further condemnation of the behaviour of bankers and calls for criminal prosecutions for those involved.
Nomura CEO Resigns Over Insider Trading Scandal

Japan's Nomura Holdings Inc. has become the latest casualty of a global regulatory crackdown on investment banks, after its top two executives decided to resign to take responsibility for their company's involvement in alleged insider trading.
Bank of England’s Mervyn King Sets Meeting to Review Libor

The Governor of the Bank of England has asked the heads of the world's leading central banks to come up with proposals to reform the hugely influential London interbank offered rate, which is used as a reference interest rate for $800 trillion in securiti
Bank’s Risk Director admits N520m (£2m) fraud

A bank official from Kent admitted defrauding his bosses of ?2 million. Michael Corrigan, 48, pleaded guilty at the Old Bailey to four offences of fraud committed between January and September 2010.
The elusive truth about Barclays’ lie

Aside from the forensic analysis about who said what to whom, there is a very simple question at the heart of the furore of Barclays' involvement in the LIBOR-rigging scandal: is it ever acceptable to lie?
How document trail reveals global scam

It's not a comfortable weekend for the men heading some of the world's biggest banks. Barclays has already been hit by a £290m fine for rigging interest rates but that could be dwarfed by a series of global lawsuits which could cost banks billions
Banks guilty of serious failings in small-business sales

Just when Britain's banks would have loved some positive publicity, the City watchdog - the Financial Services Authority - has said they were guilty of serious failings in the way they sold complicated products to small businesses that were supposed to pr
Wanted: An army of fiscal enthusiasts ready and willing to engage the fiscal system.

These high profile treasury looters feel that there are no social sanctions and mechanisms to bring corrupt and derelict public officials to book, except the decadent judicial system, which has failed in the discharge of its obligations to guarantee justi
Ex-Goldman Sachs Director Gupta Convicted of Insider-Trading Charges

A federal jury convicted Rajat Gupta, once an executive and board member at the pinnacle of American business, of insider trading, capping the fall of the most prominent figure caught in the government's drive to stop the leaking of corporate secrets to W
Losing faith in the judicial system as bank executives evade trial

Nigeria continues to witness challenges to its judicial system in dealing with crime in general – in particular, corporate crime. It is now more than three years since the Central Bank of Nigeria moved to take over a number of banks. Several bank executiv

MPC Now Predictable

AMCON Refinancing and the Misplaced Fears

Frauds & Scandals

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