Kwakol Markets Ltd has accused its chief executive officer Yakubu Teri of misappropriation of company and customer funds, leaving the firm in a difficult position.
QEDNG recently obtained a mail sent by the company’s chief operating officer Joseph Ishaku explaining the firm cannot meet customers’ withdrawal requests.
In the mail, the investment platform acknowledged that it earlier told customers that the difficulty in meeting withdrawal requests was because of “issues with service providers”.
“It has now become clear that the delays in fulfilling withdrawal requests were not due to issues with our service providers, as previously communicated. We now know that Dr. Ishaku Yakubu Teri has misappropriated company and client assets using the excuse of challenges with the service provider as a cover to mislead and divert attention,” said Mr Ishaku.
“We understand the distress this situation may cause, and we deeply regret that this has happened under our leadership.”
The company said it has initiated legal proceedings against Teri and is working closely with relevant authorities to recover the misappropriated assets.
It also assured that it has since restructured its operations to “prevent any recurrence of such issues.”
Kwakol Markets offers prospective investors a range of trading platforms. It also conducts classes on stock trading, commodities trading, indices trading and forex trading among others.
The company is a corporate authorised representative of HLK Group Pty Ltd, which holds a financial services licence from the Australian Securities and Investments Commission (ASIC).
The firm said its top priority is to recover customers’ investments excluding profits.
“We want to be transparent that the recovery and resolution process may take a significant amount of time. We are fully committed to seeing this through and ensuring that your funds are returned to you. While we cannot provide a specific date for making you whole on your investment, we commit to giving you bi-weekly updates on the recovery efforts,” Ishaku said.
Emails sent by QEDNG to the company’s official email address seeking further information were not responded to.
