NIC in talks over share fraud case

Corporate News

A Bank of Uganda information office in Kampala. The banking industry regulator is pushing for higher capital adequacy ratios. Photo/Morgan Mbabazi 

 

By GALGALLO FAYO

In Summary

• NIC moved to court accusing CDSC of allowing the fraudulent transfer of 300,000 of its client’s shares to another stockbrokerage firm, Genghis Capital, which allegedly sold them without the investor’s consent.

NIC Securities is negotiating for an out-of-court settlement with the custodian of shares at the stock market, the Central Depository and Settlement Corporation (CDSC), in an alleged fraud case in which an investor claims to have lost more than Sh10 million.

 

Lawyers representing the parties have asked the High Court to suspend the hearing of the suit to give them time for negotiations.

NIC moved to court accusing CDSC of allowing the fraudulent transfer of 300,000 of its client’s shares to another stockbrokerage firm, Genghis Capital, which allegedly sold them without the investor’s consent.

“Parties to file a consent once a settlement is arrived at and thereafter to take a mention date at the registry for endorsement and adoption of the consent as an order of this court,” directed Justice Jacqueline Kamau last week.

In the amended court documents, NIC securities claims that 279,400 Barclays Bank shares, 24,307 Nation Media Group (NMG) shares, and 100 Standard Chartered Bank shares belonging to its client Hilary Gabrielle Erculiani, were fraudulently transferred to a man, Hilary Gabrielle Erculiani.

According to NIC, the real Hilary Gabrielle Erculiani is elderly Caucasian female whilst the person who purported to be NIC customer, Hilary Gabrielle Erculiani, is a Caucasian man