Investors seek regulatory action over N4.8b investment fraud
The investors who used partnership Securities Limited as their broker were persuaded by the company to deposit their portfolio with the Partnership Securities Deposit Account (PSDA) for trading activities.
PSDA allows investors to deposit their portfolio with the company for trading while the company pays the investor interest for the use of his shares. Also, the value of the shares in terms of dividend is maintained while the usual tenor of such investments is 365 days.
According to investors, the recent revelations in the market has revealed that the company is about to deny them of their shareholding since the company has no intention of returning the stocks at maturity.
Speaking at a press briefing in Lagos recently, one of the investors, Sola Alabi whose investment portfolio worth N36 million has been stuck in the company, explained that when it was obvious that the company was no longer following the terms of agreement, as he had written to the company last year, demanding a termination of the investment.
According to him, he requested that the shares should be returned to the Central Securities Clearing System to enable him to claim the shares but the request was not granted.
The National Coordinator, Standard Shareholders Association, Godwin Anono, who invested the sum of N160 million explained that after the PSDA agreement, he received payment on the initial sale of his shares.
He however added that the company has subsequently defaulted on payment. Another investor who happened to be a widow, explained that her husband invested the sum of N4.1 million in the company.
“Even organised and regulated institution can defraud investors, not only MMM. We were not driven by greed. It is our stocks and a topmost brokerage firm is involved in this mess.”