CSL Stockbrokers in Court over Sale of Shares of Deceased Clients

February 5, 2019
Stock Market Newspaper

By Modupe Gbadeyanka

A stockbroking company based in Lagos, CSL Stockbrokers, has been dragged to court over its alleged role in the laundering, conversion and retaining of proceeds of one of its clients to the tune of N34 million.

The firm was arraigned on Monday alongside Mr Kasumu Ademola, Mr Salau Mikailu and Mr Ganiyu Isola before Justice C.J. Aneke of the Federal High Court sitting in Ikoyi, Lagos by the Economic and Financial Crimes Commission (EFCC).

The anti-graft agency slammed an eight-count charge on the suspects.

The EFCC, after receiving a complaint from the Nigerian Stock Exchange (NSE) and conducting an investigation, discovered that the defendants allegedly carried out fraudulent transaction on the shares of people who had died, and also cleared their dividend warrants.

Items found on the suspects at the point of arrest, according to the EFCC, included dividend warrants and share certificates.

One of the counts reads: “That you, Kasumu Shakiru Ademola, Salau Omoniyi Mikailu, Ganiyu Oluyede Ishola and CSL Stock Brokers, on or about the 2nd day of June 2015 in Nigeria, within the jurisdiction of this honorable court, conspired amongst yourselves to commit an offence to wit conversion of 298,550 units shares of Guinness Nigeria Plc, Nestle Food Plc, Julius Berger Plc, Unilever Nigeria Plc and Union Bank of Nigerian Plc belonging to the late Mr Joseph Adeniji Adeyemi Joseph, which shares is valued at N34 million and thereby committed an offence contrary to Section 18 (a) of the Money Laundering ( Prohibition ) Act, 2011 as amended and punishable under section 15(3) of the same Act.”

Another count reads: “That you, Kasumu Shakiru Ademola, Salau Omoniyi Mikailu, Ganiyu Oluyede Idika and CSL Stock Brokers, between the 2nd day of March and 4th day of November, 2016 in Nigeria, within the jurisdiction of this honorable court, converted the aggregate sum of N28 million, which sum you reasonably ought to have known was derived from fraud and thereby committed an offence contrary to Section 15(2)(b) of the Money Laundering ( Prohibition ) Act, 2011 as amended and punishable under Section 15(3) of the same Act.”

They pleaded “not guilty” to the charges.

In view of their pleas, the prosecuting counsel, Nnemeka Omewa, prayed the court for a trial date and also urged the court to remand the defendants in prison.

However, counsels to the defendants told the court about pending applications for bail on behalf of their clients and pleaded with the court to grant them bail in the most liberal terms.

Consequently, Justice Aneke adjourned the case to February 8, 2019 for hearing of the bail applications and commencement of trial.

Justice Aneke ordered that the defendants be remanded in prison pending the determination of their bail applications.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Leave a Reply

JP Morgan Chase
Previous Story

Malabu Scam: JP Morgan Seeks Quashing of $875m Nigerian Lawsuit

Lagos Targets N775 IGR in N852b 2019 Budget
Next Story

Lagos Targets N775 IGR in N852b 2019 Budget

Latest from Economy

Don't Miss