BANCO, CREST SCAMS
Investors’ money yet to be paid
The Dhaka Stock Exchange has failed to recover funds allegedly embezzled by owners of Banco Securities Limited and Crest Securities Limited.
Owners of Banco Securities and Crest Securities allegedly embezzled investors’ money worth Tk 66.59 crore and Tk 48 crore respectively between June 2020 and June 2021.
DSE chief operating officer and public information officer M Saifur Rahman Mazumdar told New Age that the bourse had been working on the issue.
He said that the bourse was still negotiating with senior officials of the two brokerage houses.
If the officials fail to pay back the clients’ money, the bourse will sell their assets for repayment, Mazumder said.
However, it may take time to complete the various processes, he said.
On June 14, the DSE suspended the operations of Banco Securities, a brokerage house of the DSE, for alleged embezzlement of Tk 66 crore from consolidated customers’ accounts.
The DSE immediately froze all the BO accounts of the investors.
On June 30, the Anti-Corruption Commission arrested Banco Securities Limited chairman Abdul Muhith while he was attempting to leave the country at Hazrat Shahjalal International Airport in Dhaka, an hour after the commission filed a case against him.
ACC deputy assistant director Nur Alam Siddique on June 29 filed the case with its integrated district office, Dhaka-1 against Muhith and five others on charge of embezzling clients’ money worth about Tk 66.59 crore.
The BSEC also froze the bank accounts of 10 companies which had common directorship with Banco Securities.
But no money has been recovered in the last five months.
In June 2020, owners of Crest Securities Limited, a brokerage house of the DSE, went into hiding after allegedly embezzling the clients’ money.
Crest Securities managing director Md Shahid Ullah and his wife Nipa Sultana embezzled Tk 48 crore from several thousands of clients and then shut down their brokerage house before going into hiding, Dhaka Metropolitan Police detectives said in July 2020.
The brokerage house initially held client investments worth around Tk 100 crore while there were over 22,000 BO-account holders at the brokerage house, they said.
However, after some settlement, the claims against Crest Securities now stand at around Tk 20 crore.
Market operators said that the market had been rising since July 2020 after prolonged distress.
However, the investors of Crest Securities and Banco Securities failed to invest their money on the bullish market as their money was embezzled by the brokerage houses, they said.