B Mirror Report: Serious allegations of fraud, financial irregularities amounting to crores of taka, and corruption have been raised against Md. Ariful Islam, the Chief Executive Officer (CEO) of Commerce Bank Securities and Investment Limited.
Additionally, information has emerged that he caused losses of nearly Tk 10 crore to the institution by parking shares through a dealer code for personal gain allegedly colluding with gamblers to buy shares of weak companies at inflated prices in exchange for financial benefits.
On Tuesday (March 10), a written complaint regarding the matter was submitted to the Anti-Corruption Commission (ACC) and the Bangladesh Securities and Exchange Commission (BSEC).
According to ACC sources, Md. Ariful Islam allegedly resorted to fraud during the recruitment process for the CEO position at Commerce Bank Securities. Although he declared that he was employed at his previous organization, Binimoy Securities, he was appointed as a contractual CEO at the current institution without obtaining any formal clearance from his former employer.
Since assuming office, complaints have been lodged with the ACC accusing him of involvement in various financial irregularities. The complaint also states that officers who protest against his unethical and arbitrary actions face harassment.
Sources from BSEC stated that CEO Ariful Islam engaged in irregularities in share trading using a dealer account and made risky investments through margin accounts. He allegedly invested in the widely discussed Lovello share in exchange for personal financial benefits, causing losses of crores of taka for the institution while personally benefiting. BSEC has already conducted multiple investigations and imposed fines regarding the controversial Lovello share.
Furthermore, ignoring board decisions, he allegedly pushed the institution toward a major financial crisis by parking shares worth about Tk 10 crore.
BSEC sources also say that complaints have been received that Md. Ariful Islam, despite not being an authorized trader, violated securities laws by secretly conducting trades behind closed office doors. He is also accused of ignoring margin regulations and granting unethical financial advantages to certain portfolio holders in exchange for cash benefits.
The complaint also mentions that corporate governance within the institution has severely deteriorated. Allegations include intimidation of employees through the human resources department, harassment, transfers, or dismissal for disagreements, and other inhumane behavior by the CEO.
It is also alleged that he has been discouraging new investors from investing, which concerned parties believe is suicidal for a brokerage house.
In the written complaint submitted to the ACC and BSEC, affected officers and investors have demanded a neutral investigation into the allegations and swift legal action against Md. Ariful Islam.
When asked about the allegations, Md. Ariful Islam told media that board approval is not required for making investments; the committee gives approval. When questioned about the alleged parking of Lovello shares in exchange for financial benefits, he avoided the issue and said that the investment in Lovello, initially intended for the short term, turned into a long-term investment, and they are currently facing a 10–12% loss.
He also mentioned that there is a case involving Sonali Life against their company. According to him, a special audit was conducted after he joined, but he did not receive cooperation from employees. He added, “Can I act arbitrarily alone? There is a board above me.”
