Intermember transfers are very very sensitive. Both the domiciliary stock broker and receiving stockbroker have to sign at MD level (stamped and sealed)before transfers are granted. The domiciliary stockbrokers especially would invite the account holder personally in the case of high net worth accounts before transferring the stocks. This is never a third party transaction except the stockbrokers are not professionals. If the domiciliary broker was not informed and the stocks were moved without their consent, the liability belongs to CSCS and recipient broker m( a case of fraud, obviously).

The claim that the account owner has to be supported by the creation of an Estate account in CSCS. The requirements for opening such an account would include a sworn affidavit, death certificate, etc. There are rules for these things...you can't just claim rubbish and start transferring peoples shares without due process. Unless of course you have an insider.

tony1980: An unexamine life is not what living according to Socrates.

Socrates couldn't have murdered english this way. U r a lair.

This happened to you too. Only God can save us in Nigeria

[size=18pt]JUST DIRECT YOUR LETTER OF COMPLAINT TO SEC AND COPY BROKER A AND B[/size]

SEC's Default response is usually to write the house that sold the shares to buy back the units sold and send proof along with explanation of what happened usually one of the two brokers if not the two of them will have their licence suspended. They wrote my office in 2007 about 100 units of Cadbury sold in 1997, we had to buy back as we were all new including our MD and knew nothing about the transaction

ypzilanti: The claim that the account owner has to be supported by the creation of an Estate account in CSCS. The requirements for opening such an account would include a sworn affidavit, death certificate, etc. There are rules for these things...you can't just claim rubbish and start transferring peoples shares without due process. Unless of course you have an insider.

They provided all these things. Forged of course. I have copies of everything. I found out there is a requirement called ''know your customer'' (KYC) and B stockbroker obviously didn’t do that. We are all Nigerians and we know paper documents can easily be printed by any semi-professional printer with a little knowledge. I strongly suspect B stockbrokers to be part of the scam for the following reasons.

1. They have been in the business since 1997 yet they couldn’t see obvious inaccuracies like the death certificate showing year of death as 2010 and the High Court letter of administration showing year of death as 2011
2. Any stockbroker with half a brain should wonder why the estate of the deceased will not deal with the deceased's own brokers instead they chose to transfer the shares to a new broker before selling. The question they should have asked is why make things so hard for yourselves
3. Why carry on with this fraudulent request when the resident broker had denied your earlier request to transfer

The scammers

pappilo:
They provided all these things. Forged of course. I have copies of everything. I found out there is a requirement called ''know your customer'' (KYC) and B stockbroker obviously didn’t do that. We are all Nigerians and we know paper documents can easily be printed by any semi-professional printer with a little knowledge. I strongly suspect B stockbrokers to be part of the scam for the following reasons.

1. They have been in the business since 1997 yet they couldn’t see obvious inaccuracies like the death certificate showing year of death as 2010 and the High Court letter of administration showing year of death as 2011
2. Any stockbroker with half a brain should wonder why the estate of the deceased will not deal with the deceased's own brokers instead they chose to transfer the shares to a new broker before selling. The question they should have asked is why make things so hard for yourselves
3. Why carry on with this fraudulent request when the resident broker had denied your earlier request to transfer

The scammers

Once a valid (on face value) 'request to transfer' is submitted to a broker, the broker really has no choice but to comply. Broker 'A' would have the best practices option of verifying the status of their customer before agreeing to a transfer...they are, after all, losing business by the transaction.

The broker 'B' receiving the shares would know that this is a fraud. They will however, claim ignorance as the conditions stated by CSCS and NSE seems to have been met by the fraudsters. It seems the liability lies with CSCS/NSE who have the final say in the transfer, and failed to flag it as suspicious. A letter is always written addressed to the head of NSE asking for authorization to transfer shares. The D.G. of the stock exchange (most likely an aide in his office) is liable for this wahala.

Paippilo, give us a name. Those faces have a name and also B stockbroker.

B.Stockbroker knows alot in the whole shady deal.

nawa oo on tuesday na share day?

nawa oo this tuesday na share day for nairaland?

pappilo: Can anyone with knowledge on this subject area help me with some information please.

Background of the story is Mr J has several share holdings held electronically with A stockbroker. B stockbroker ask for an inter-member transfer of Mr J's holding to them as Mr J has passed away and they have been authorised by his estate. A stockbroker contacted Mr J and he informs that he is alive and well and did not authorise any such requests. A stockbroker declines B stockbrokers request.

Fast forward to a month later, A stockbroker realises that CSCS authorised the transfer and all Mr J's holding have bben transfered to B stockbroker. B stockbroker have sold shares worth N23 million with N4 million already completed and N19 million pending. A stockbroker has now written to NSE and we are awaiting the next cause of action. There are still shares worth millions which havent been sold but are now under the control of B stockbroker

My questions are

1. Why did CSCS authorise the transfer?
2. Can the pending transactions be stopped?
3. How do we go about getting the shares transfered back to the A stockbroker
4. who is liable for the losses?

Thank you

if you havent already done so, report to STFU Milverton Avenue Ikoyi, they will pick up the conniving stockbrokers and after due drilling, they will reverse the sale and transfer. My office once coonived with stock brokers and sold shares we held in trust for a recalcitrant debtor. I spent the whole day at STFU trying to bail the MD of one of my subsidiaries, the guy that pulled that stunt. He was granted bail when he had written an instruction reversing the transfer. Those guys are good at it and they are experienced.

omenka:

Socrates couldn't have murdered english this way. U r a lair.

English teacher, help yourself first.

@ poster: please send a copy of your complaint to oshobanjo@nse.com.ng. That is the e-mail address of the head of the broker dealer regulation department of The Nigerian Stock Exchange. I can assure you that your complaint will be treated immediately he receives it. You may copy nahmed@nse.com.ng. Thank you.

hardbody:


if you havent already done so, report to STFU Milverton Avenue Ikoyi, they will pick up the conniving stockbrokers and after due drilling, they will reverse the sale and transfer. My office once coonived with stock brokers and sold shares we held in trust for a recalcitrant debtor. I spent the whole day at STFU trying to bail the MD of one of my subsidiaries, the guy that pulled that stunt. He was granted bail when he had written an instruction reversing the transfer. Those guys are good at it and they are experienced.

You may not believe this but the same scenario above happened last year.

Shares worth tens of millions of naira in paper certificates were given to the oldest bank in Nigeria in 2007 to stand as collateral against an overdraft facility which incidentally has never been drawn. Someone in the bank actually removed the certificates and tried to sell the shares. They also claimed Mr J had died. Luckily Mr J tried to cash in his dividend and he was told he was dead! That case is still ongoing.

forget all the advice above. call this no. 08033480606 now or the value in those stock will enter into a protracted legal nonsense. a lot of brokers win this cases if they showed they dealt in good faith and this simply means they had orders from someone whose signatures exactly corresponds with the one you provided.
brokers dont really have to know their clients only their signatures thats why the process mostly involved is called verification.

Just came across this thread that I started as Mr J (who is my father) sadly (really) passed away last month and I was searching the web for the next steps to take.

Update of the original thread

1. I wrote several e-mails to anyone and everyone that mattered at CSCS & NSE and made as much noise as possible
2. I involved a lawyer and after forcing Mr J who was very poorly at the time to appear at the CSCS, they instructed B broker to buy back shares
3. The shares were bought back in full and transfered back to A stockbroker
4. I registered for the CSCS online account and now view the shares portfollio on a weekly basis to ensure no magic has taken place
5. CSCS never sanctioned B stockbroker. The CSCS is not a very professional organisation because at the meeting held with Mr J, they were begging the MD of B stockbroker to buy back the shares and they never even mentioned anything about sanctioning him.

[quote author=pappilo post=32772791]Just came across this thread that I started as Mr J (who is my father) sadly (really) passed away last month and I was searching the web for the next steps to take.

Hello,
Sorry about your dad's passing. Good to know you were able to resolve the issue.
I stumbled on this thread as I seem to have been swindled by a stockbroker. I issued a draft of 330,000 in favour of the firm for the purchase of 10,000 units of a bank's shares in 2007. After a few years of not receiving any certificate, share dividends or correspondence whatsoever, i visited the bank's registrars who confirmed that my name was not on their system as a shareholder.
I discovered the office of the broker closed and a look online reveals they have their licence revoked due to issues like this. I also saw a lawsuit online against the co and owners.
Ps does anyone know if there is any hope for this case? Any constructive advise is welcome.
Thanks

pappilo:
Can anyone with knowledge on this subject area help me with some information please.

Background of the story is Mr J has several share holdings held electronically with A stockbroker. B stockbroker ask for an inter-member transfer of Mr J's holding to them as Mr J has passed away and they have been authorised by his estate. A stockbroker contacted Mr J and he informs that he is alive and well and did not authorise any such requests. A stockbroker declines B stockbrokers request.

Fast forward to a month later, A stockbroker realises that CSCS authorised the transfer and all Mr J's holding have bben transfered to B stockbroker. B stockbroker have sold shares worth N23 million with N4 million already completed and N19 million pending. A stockbroker has now written to NSE and we are awaiting the next cause of action. There are still shares worth millions which havent been sold but are now under the control of B stockbroker

My questions are

1. Why did CSCS authorise the transfer?
2. Can the pending transactions be stopped?
3. How do we go about getting the shares transfered back to the A stockbroker
4. who is liable for the losses?

Thank you

Petition the EFCC. So sad Nigeria has been turned into this mess.