Business Desk :
The IFIC Bank has issued an auction notice to sell the assets of Banco Securities – accused of embezzling money from general investors – to recover its loan to the brokerage firm.
According to sources, the brokerage firm owes Tk8.35 crore to the IFIC Bank as of 31 March. Banco Securities has become a defaulter as it has not repaid the loan instalments. So, according to the rules, the bank has called an auction to recover the loan.
The bank will recover the loan by selling two of Banco Securities’ flats – one in Paltan, another in Gulshan.
Those interested in participating in the auction have to submit an application by 9 May, said the IFIC Bank.
Following several complaints about anomalies by clients, a Dhaka Stock Exchange (DSE) team on 6 June 2021 found that the consolidated customer account of the brokerage firm had a Tk66.59 crore shortfall, which was a certain outcome of fund diversion and embezzlement of client money in most cases.
Brokerage firms have to maintain consolidated customer accounts. Any shortfall there indicates that clients’ money has been diverted somewhere else, which is a financial crime.
Meanwhile, based on DSE’s complaint, the Anti-Corruption Commission (ACC) filed a case accusing the six directors of fund embezzlement.
The directors accused in the case are Abdul Muhit, Shafiul Azam, Waliul Hasan Chowdhury, Nurul Ishan Sadat, A Munim Chowdhury, and Jamil Ahmed Chowdhury. Soon after, the bourse stopped the trading operations of Banco Securities and later offered its clients the opportunity to switch to other brokers.
Besides, the securities regulator has written to the authorities concerned, asking them not to allow the directors to leave Bangladesh. Following the securities regulator’s request, airport immigration police arrested Abdul Muhit, chairman of Banco Securities. He was then sent to jail in an ACC case. However, he was later released on bail.
