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Falu fined Tk 10 million for  share market fraud

29 October,2014

RTNN News Desk: The SEC has fined Mosaddek Ali Falu Tk 10 million for capital market manipulation five years ago.

The capital market regulator, in its Wednesday meeting, also fined one Golam Mostofa Tk 30 million on similar charges.

Former MP Falu, who was BNP chief Khaleda Zia's political secretary, is one of the owners of the private channel NTV.

Angry small investors hit the streets in 2009 after the capital market boom and bust.

It was alleged that a massive sum of money was misappropriated during the debacle. Falu's party BNP puts the amount at Tk 840 billion.

The government launched investigations, led by former Bangladesh Bank deputy governor Khondokar Khaled Ibrahim, into the debacle.

The market regulator dug further going by the committee's recommendations and found proofs of manipulation by Falu and Mostofa, a media statement said.

The SEC said they had proofs that Falu influenced share prices of IFIC Bank Limited and Beximco Limited while Mostofa manipulated prices of Eastland Insurance, Navana CNG, Olympic Industries, Union Capital, Lanka Bangla Finance and First Lease International Limited shares.

It said it had summoned the two to hear their explanations but “did not find their explanations acceptable”.

Ibrahim said they had proofs of money being laundered and put the amount at no less than Tk 50 billion.

He had blamed all stakeholders, particularly the regulator’s incompetence, for the debacle.

The government reformed the SEC based on the probe body's recommendations and took initiatives to compensate the victims.

The market is slowly bouncing back after a slew of measures.

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