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”.
“Over the past few months, we have encountered significant issues that have severely impacted our ability to fulfill withdrawal requests. After
a thorough internal review, we have uncovered serious misconduct by our Managing Director and CEO, Dr. Ishaku Yakubu Teri, which has resulted in
the misappropriation of company and client assets. This breach of trust goes against everything we stand for as a company, and we deeply regret
the distress and inconvenience this has caused you.
“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.
“We understand the distress this situation may cause, and we deeply regret that this has happened under our leadership,” said Mr Ishaku.
The company said it has initiated legal proceedings against Teri and is working closely with relevant authorities to recover the misappropriated assets.
“We have initiated legal proceedings against Dr. Ishaku Yakubu Teri and are working closely with relevant authorities to recover the misappropriated assets. This process is complex and may take time, but we are committed to pursuing every possible avenue to restore your funds,” the company said.
It also assured that it has since restructured its operations to “prevent any recurrence of such issues.”
“We have restructured our operations to focus solely on stabilizing the company and addressing the current crisis. This includes reinforcing our internal controls to prevent any recurrence of such issues and optimizing our resources toward asset recovery and client relations.
“We understand the importance of keeping you informed. Our client relations team is available to answer any questions you may have, and we will continue to provide regular updates on our progress,” it said.
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.
“During this recovery period, your investments will not generate profits. We understand that this is disappointing, and while we cannot offer any additional monetary incentives, we assure you that our top priority is to make you whole on your investment.
“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.
