CIS sanctions 2 erring Stockbrokers


By Peter OBIORA investadvocate

Oct 07 2010 16.59 GMT

Lagos (investadvocate)-The Chartered Institute of Stockbrokers (CIS) has today Thursday October 07 2010 sanctioned two erring Stockbrokers for allegedly selling shares belonging to investors without mandate.


This was contained in a document made available to investadvocate in Lagos Nigeria.


The document dated October 07 2010 by Order of the Disciplinary Tribunal was signed by K.A. Audu, Secretary- Disciplinary Tribunal of the CIS.


The two Stockbrokers involved conducted the illegal Transaction using the machinery of Foresight Securities and Investment Limited (Member of the Nigerian Stock Exchange) NSE.


The names of the Brokers involved are Ogbebor Bright Alex and Ailenbuade Akowe Samson; both Brokers/Dealers for Foresight Securities.


The first Count Charge in suit number CISDT/A647/02/2009 was carrying out the sales of Guaranty Trust Bank Plc (GTbank) 8,000 units and Total Oil Plc (Total) 800 units of shares belonging to Miss Ololade Deborah Ariremako and United African Company of Nigeria (UACN) 1,214 units and First Bank of Nigeria Plc (FBN) 1,697 units of shares belonging to Mr. Francis Oladoyinbo Ariremako respectively without their knowledge.


This offence the document affirms is contrary and punishable under Regulation 5 (vi) and 5 (xvi) of the Members Regulations and Code of Conduct (2005) and section 11 (i) (a) of the CIS Act 105 of 1992.


The second count charge for both Stockbrokers was failure to verify a purported letter of authority/mandate dated September 30 2005 and sworn affidavit purportedly sworn to by Mr. Francis Oladoyinbo Ariremako on February 21 2006; which was brought by one Mrs. Bose Dinyo before proceeding to sell the shares of both respondents.


This the CIS affirms is punishable under Regulation 6(a) (ii) of the Members Regulation and Code of Conduct 2005 and Section 11 (i) (a) of the Institutes Acts 105 of 1992.


While the third Count Charge slammed on the two Brokers was making payment of the proceeds of the sale of the shares of the two investors to Mrs. Dinyo who purportedly brought the sworn affidavit and fake mandate letter for the shares to be sold.


The above is also an offence contrary to and punishable under Regulation 5 (vi) and 6 (a) (ii) of the Members Regulations and Code of Conduct (2005) and Section 11 (i) (a) of the CIS Act 105 of 1992.


The document affirmed that the Institute having seen and considered the evidence adduced, and having heard the plea of not guilty to the Count Charges by both Brokers; thereby finds them guilty of all the three charges.


However, the CIS Disciplinary Tribunal directed that the two guilty Market Operators are given one month from today Thursday October 07 2010 to buy back and restore all the shares and accrued benefits which include bonuses and dividends where applicable.


Also, the Respondents are to be reprimanded in writing by the Registrar of the Institute.  

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