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An alleged embezzlement amounting to Tk 311 crore through deceptive practices involving fabricated investments in Fixed Deposit Receipts (FDRs) and Mudaraba Term Deposit Receipt (MTDR), along with unauthorised placement in commercial paper (short-term debt), was found.
These fraudulent activities have been uncovered within Universal Financial Solutions Limited (UFS), an asset management firm registered with the Bangladesh Securities and Exchange Commission (BSEC).
ACC has taken legal action by filing a case against 24 individuals, which notably include the Managing Director of the Investment Corporation of Bangladesh (ICB), the Chairman, and the Managing Director of Universal Financial Solutions Limited (UFS).
Deputy Director Mohammad Hafijul Islam has taken on the role of plaintiff, officially filing the case at the ACC's integrated district office in Dhaka 1 on Sunday.
ACC Secretary Mahbub Hossain publicly disclosed this significant development during a press briefing.
It was known that Universal Financial Solutions Limited Chairman Syed Alamgir Farukh Chowdhury, Managing Director Syed Hamza Alamgir, and Director Ishrat Alamgir, Alia Haque
Alamgir, Syeda Shehrin Hossain, Syeda Mehreen Rahman, Mahid Haque, Mohammad Zakir Hossain, Md. Tariq Masood Khan, Mohammad Masum Chowdhury, and Mosammat Umme Islam Sohana. Chief Investment Officer Mo Mominul Haque, Manager Mohammad Saqib Al Farooq, and Head of Fund Operations Mohammad Hafizur Rahman Rajib of the same organisation, Investment Corporation of Bangladesh (ICB), Managing Director Mosaddekul Alam, Assistant General Manager Taleb Hossain, Deputy General Manager Mohammad Shahjahan, and former Assistant General Manager Mahbub Alam. Besides, Muhammad Javed Ali Mridha, an official of Audit Firm Ahmed Zakir & Co., Mohammad Mofizul Haque Rinku, an official of Rahman Mostafa Alam & Co., Fakhrul Alam, owner of RI Enterprises, Taslima Rahman, Chairman of Vanguard Traders Limited, Sharik Ahmed, MD of Multimax International, and Tanzin Fashions Limited MD. AIM Mahabubul Mujib were the accused in the case.
As per the details provided in the case statement, the defendants purportedly orchestrated the transfer of the organization’s funds into multiple bank accounts and business entities, subsequently controlling and managing these funds under their personal names.
They allegedly executed investments in commercial papers (short-term loans) under various organisational identities, utilising these manoeuvres to misappropriate a sum totaling Tk 59 crore and 40 lakh without fulfilling the repayment obligations on these loans.
The investigation revealed a stark contrast between the declared investment and the actual amount embezzled concerning the purported investment in Fixed Deposit Receipts (FDRs) and Mudaraba Term Deposit Receipt (MTDR)within the money market. While the records indicate that only Tk 8 lakh was legitimately invested across various intervals in term deposits of four mutual funds, an alarming discrepancy emerged as an astounding Tk 147 crore and 92 lakh were found to have been unlawfully syphoned off or embezzled under the guise of these FDR investments.
Besides, a total of 63 crore 87 lakh taka derived from the sale of shares has been implicated as part of the alleged embezzlement. An amount totaling 7 crore, 89 lakh, and 95 thousand taka, purportedly designated for managing mutual funds, is alleged to have been misappropriated. Additionally, an amount of 31 crore, 76 lakh, and 48 thousand taka, presumably accrued as interest, has been identified within the embezzled funds. Furthermore, an additional 59 crore and 24 thousand taka labelled as trustee fees have been included in the overall embezzled sum.
Collectively, these specific figures totaled 311 crore, 44 lakh, 87 thousand, and 314 taka, revealing the wide-ranging nature of the suspected financial irregularities and misappropriation within the organisation.
It has been reported that shares amounting to 17 crore, 54 lakh, and 36 thousand taka from the UFS-Bank Asia Unit Fund, UFS-IBBL Shariah Unit Fund, UFS-Padma Life Islamic Unit Fund and UFS Popular Life Islamic Unit Fund were purchased during the period spanning January 1 to December 31, 2022. Additionally, shares worth 81 crore, 41 lakh, and 55 thousand taka were purportedly sold within the same timeframe.
The funds garnered from the sale of shares, totaling Tk 63 crore, 87 lakh, and 18 thousand, were allegedly transferred through the Real Time Gross Settlement (RTGS) method. These transfers were made to the personal account of Syed Hamza Alamgir and directed to the company under the name of Mahid Haque. However, these substantial sums were reportedly not deposited into or accounted for within the UFS Fund as per the records or financial statements of the organization.
It has been revealed that Muhammad Javed Ali Mridha and Muhammad Mofizul Haque Rinku purportedly misrepresented crucial financial data in the annual audit reports spanning from 2016 to 2021, as well as in the quarterly financial statements of the relevant unit funds. Allegedly, they falsified information concerning net assets, bank statuses, Fixed Deposit Receipts (FDRs), Mudaraba Term Deposit Receipt (MTDR), and share securities, among other key financial indicators.
Following the completion of the audits, these misrepresented reports were submitted to the ICB Trustee Division through the UFS. Shockingly, despite these irregularities, it has come to light that the ICB approved these falsified annual and quarterly financial statements.
According to ACC, ICB Managing Director Mosaddekul Alam, Assistant General Manager Taleb Hossain, and former Assistant General Manager Mahbub Alam approved the investment in commercial paper.
Messenger/Disha
