LR Global Under Investigation for Embezzlement and Money Laundering; BSEC Takes Stern Action
LR Global Bangladesh Asset Management Company Ltd., one of the prominent asset managers in the country’s capital market, is under serious regulatory scrutiny over allegations of money embezzlement and laundering involving six mutual funds.
The Bangladesh Securities and Exchange Commission (BSEC) has formed a three-member investigation committee to probe 16 critical issues surrounding LR Global’s financial conduct. The committee, comprising Additional Director Sheikh Md. Lutful Kabir, Deputy Director S. M. Ahsanul Kabir, and Assistant Director Md. Matiur Rahman, has been given 60 working days to submit its findings.
The investigation focuses on the alleged unauthorized investment of Tk 49 crore from six mutual funds:
- DBH First Mutual Fund
- Green Delta Mutual Fund
- AIBL First Islamic Mutual Fund
- LR Global Bangladesh Mutual Fund-1
- NCCBL Mutual Fund-1
- MBL First Mutual Fund
According to reports, the embezzled funds were transferred overseas, breaching both financial regulations and investor trust. In response, the BSEC has mandated LR Global to repay the full amount with interest. Non-compliance has led to a cumulative fine of Tk 60 crore, including:
- Riaz Islam (Managing Director & CIO) – Tk 50 crore
- George Stock (Director) – Tk 4 crore
- Monowar Hossain (Former Head of Legal & Compliance) – Tk 4 crore
- Ronald Mickey Gomez (CFO) – Tk 1 crore
- The six mutual funds collectively – Tk 1 crore
This is not LR Global’s first brush with controversy; in 2015, the firm was fined Tk 5 million for irregular fund management practices.
Market observers have welcomed the BSEC’s tough stance, viewing it as a necessary step toward restoring investor confidence and ensuring accountability in the financial sector.
