Three stock brokers,hiterto registered with the Nigerian Stock Exchange (NSE), Mr. Victor Ogiemwonyi, Mr Joel Okafor and Mrs Ladi Barbara Onwordi,have been expelled and registration revoked as authorised dealing clerks of the Exchange. Consequently, they shall not be allowed to participate in trading or owning a trading firm at the Exchange.Council has expelled three stockbrokers for alleged misappropriation and fraudulent sale of client’s shares.

They were indicted for alleged misappropriation and unauthorised sale of client’s shares,according to a circular of the NSE Disciplinary Committee which oversees ethics and compliance,signed by Head, Broker Dealer Regulation, NSE, Olufemi Shobanjo.

Okafor and Onwordi, who were members and authorised dealers on the Exchange, were stripped of their registration and trading authority for allegedly selling their clients’ shares without the mandate.

Ogiemwonyi, who has been at the centre of an alleged multi-billion naira capital market fraud, was expelled for “misappropriation of clients” funds. Ogiemwonyi, a fellow and former council member of the Chartered Institute of Stockbrokers (CIS) and former council member of the NSE, had earlier been indicted by the Administrative Proceedings Committee (APC) – the adjudicatory arm of the Securities and Exchange Commission (SEC).

According to circular, Mr. Okafor cannot be employed in any capacity, appointed as a director or have shareholdings of 5.0 per cent and above in any dealing member firm or sub-broker.

A compliance officer with Ogiemwonyi’s firm, Partnership Securities Limited, Mr. Fisayo Ibrahim Jassey-Jabarr, was suspended for five years for alleged failure to report regulatory breaches during his tenure.

“Dealing members are advised not to engage in any activity with the above listed individuals,” the Exchange warned.

With the expulsion, the indicted stockbrokers will also not be able to work in any stockbroking and investment firms in Nigeria, according to Rule 6, (12) of the NSE Rules.

Under the rule known as “Specific Actions Requiring Prior Consent of The Exchange”, a dealing member shall not be allowed to employ some categories of persons without the prior written consent of the Exchange.These included directors, authorised clerks or other persons including principal officers such as the chief executive officer, chief finance officer, chief compliance officer and chief risk officer, who have been indicted by the NSE or Securities and Exchange Commission (SEC).

Others included any person who was an officer or employee of a dealing member expelled from the Exchange, any person expelled, as an authorised clerk or its equivalent, from any other exchange, any person refused admission as a member of the Chartered Institute of Stockbrokers or any person expelled from its membership, any person expelled as a member of any professional association or institute and any person who is insolvent or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty.

As financial pressure mounts on stockbrokers and stockbroking firms due to the prolonged downtrend at the stock market, authorities at the Nigerian stock market have stepped up concerted efforts to checkmate unauthorized sales of clients’ shares.

Two official reports on shares fraud indicated that NSE had invited the EFCC to further investigate and prosecute indicted 12 stockbroking firms and 21 stockbrokers and officials.

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