The Economic and Financial Crimes Commission (EFCC) yesterday arrested the Managing Director of a stock broking firm, Transglobe Investment and Finance Company Limited, Mr. Joseph Okolie, and the General Manager, Mr. Sunny Ameh, over an alleged N3.2bn fraud. The firm was alleged to be in the habit of selling its clients' shares and converting the proceeds of private placements to personal use.

The EFCC said that the suspects were picked up by the operatives of the commission in Abuja . A sum of N3.2bn was given to the suspects by the Shell Staff Cooperative Society for the purchase of shares, but the money was diverted by the suspects.
The Head, Media and Publicity of EFCC, Mr. Femi Babafemi, confirmed the arrest but said he could not make categorical statement on the matter.
According to ProshareNews, an online news portal, Transglobe has been under investigation by the Securities and Exchange Commission for an alleged illegal trading on shares of most of its clients including the misappropriation of funds belonging to the co-operative society of Shell.

A letter dated February 4, 2009, with the reference, �SEC/M & I/INVGT/MISC277/09, which is quoted on ProshareNews, stated that SEC had invited the cooperative to an all- parties meeting at its head office on February 12, 2009.

The website also claimed that the firm owed huge sums to other clients while its former management in collaboration with some banks and fund managers made a lot of money through share manipulations and financial engineering, especially on their transactions related to Geofluids Nigeria Limited.

The Nigerian Stock Exchange had also suspended the company in 2008 over infractions against its clients, which allegedly included issuing of dud cheques, purchase of shares with clients funds in the company‘s names instead of the clients names. Proshare added that the company also involved itself in the unbundling of shares purchased in the name of clients not credited to the Central Securities Clearing System account but sold through contract notes.

When contacted on the issue at hand, Mr. Lanre Oloyi, the spokesman for the SEC, said that he was aware that the company had a case with the commission, but that he knew nothing about the arrests.

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