Criminal proceeds from abroad strategically enters the country's stock market

Two institutions linked to Javed Matin, who is accused of share manipulation in the United States, have brought Tk 11 crore 37 lakh into the country. That money entered the country's stock market after passing through various banks, individuals, institutions, brokerage houses, and BO accounts.

Former BSEC Chairman Shibli Rubayat-Ul-Islam, Abul Khayer Hiru, Sayedur Rahman, Maniza Chowdhury, and a number of individuals and institutions have been found to be connected as associates in the layered transfer of that money. Now, the Bangladesh Securities and Exchange Commission (BSEC) has decided to ask the Criminal Investigation Department (CID) of the police to carry out further investigation into the sources and movement of the fund.

According to various sources and investigations, Aagamir Somoy has learned that at the initial stage, the Bangladesh Financial Intelligence Unit (BFIU) came across information about the suspicious source of the money and the transactions. Later, through BSEC, an investigation identified the route through which it invaded the stock market.

BSEC sources say that during the hearings in the investigation, since Javed Matin, Abul Khayer, Maniza Chowdhury, and Shibli Rubayat did not appear and provide information except Sayedur Rahman, action will be taken under the securities law.

Dr. Iftekharuzzaman, Executive Director of Transparency International Bangladesh (TIB), told Aagamir Somoy that exemplary punishment and accountability must be ensured for individuals involved in irregularities and crimes in the stock market. Individuals convicted of crimes such as share manipulation abroad should not have the opportunity to do business in the country's stock market. He also urged the necessary reforms to close legal loopholes to stop such activities.

A review of documents shows that a case was filed against Javed on allegations of fraudulent activities involving the shares and assets of the US-based Veltex Corporation. In the final court verdict in 2012, an order was issued for compensation of approximately $10 crore 7 lakh 86 thousand 621 in connection with the transfer and misappropriation of the company's shares and assets, mentioning the collusion of Javed and others concerned.

According to BFIU documents, after 2020, a total of Tk 11 crore 37 lakh came to Bangladesh as remittances from the US-based Monarch Holdings USA and Matesha Apparel Inc, linked to Javed. Information was found on three bank accounts of Jin Bangla Fabrics and Shibli as the recipients.

In the BFIU documents, Jin Bangla has been described as an institution in which Shibli has an interest. Although the owner is Ariful Islam according to papers, the bank account address is the same as Shibli's one, and his specimen signature was found on the checkbook. Money was also deposited into Jin Bangla's Mutual Trust Bank account and Shibli's Bank Asia, Southeast Bank, and Commercial Bank of Ceylon accounts. Although bank records show the reasons for these transactions as exports, loans, and family expenses, tangible documents for the relevant exports were not found. This created suspicion about the source and true purpose of the money. Afterwards, the money was transferred from the account of the initial recipient to the accounts of various individuals and institutions.

Professor Al-Amin, Acting Dean of the Faculty of Business Studies at Dhaka University, said that transparency, accountability, and neutrality of the regulatory body are extremely important to ensure good governance in the stock market. If the truth and crime of such incidents are proven, quick action must be taken under existing laws. Because if allegations against influential individuals are not resolved, investors' confidence will not return. If legal action is ensured, a positive message will go to the market and it will help prevent irregularities in the future.

According to the BSEC investigation report, Tk 40 lakh went from Jin Bangla's account to Sayedur Rahman's account. Later, it became a joint account of him and his wife Ferdousi Begum, was deposited with EBL Securities, and was invested in the stock market. Tk 40 lakh also went from Jin Bangla to Javed's BO account. In addition, Tk 20 lakh through Greenland Equities and another Tk 20 lakh through IDLC Securities were deposited into his BO account.
How much money in total came into Shibli Rubayat's bank account Is not mentioned in the Report.

However, Tk 2 crore 45 lakh went from his personal and business accounts to Abul Khayer's NCC Bank account and to his institution Desh Ideal Trust Co-operative's UCBL account. Later, that money was transferred to UCBL Stock Brokerage and invested in the stock market. Another Tk 1 crore 65 lakh went directly from Shibli's account to IDLC Securities, Greenland Equities, UCBL Stock Brokerage, and CWT Opportunities Fund, which was later invested in the stock market. From his Bank Asia account, Tk 83 lakh was transferred in several installments through IDLC Securities' CC account to Javed's BO account. Tk 20 lakh that went from the same account to Greenland Equities' CC account was also transferred to Javed's BO account. In addition, information was found that money was also sent from Shibli's account to his son Zubair Sharaar Islam's account and his mother-in-law Nazma Daula's account; however, the amount is not mentioned. Tk 30 lakh went to Maniza Chowdhury's Bank Asia account. Tk 2 crore 62 lakh was withdrawn in cash through her assistant Delwar.

The investigation committee also raised questions about Shibli's own investments. While serving as BSEC chairman, he bought 45,715 units of CWT Opportunities Fund—16,159 units on September 7, 2021, and 29,556 units on October 4, 2023. This investment in a private open-end mutual fund not listed under the commission's regulation is contradictory to condition No. 10 of his employment contract.

Md. Abul Kalam, Executive Director and spokesperson of BSEC, said that the investigation into money transactions through the bank accounts of Javed Matin and related individuals has yielded considerable information. The commission has decided to send the matter to CID for further investigation into the movement of the fund.
Several attempts were made to contact Javed Matin for his comment on the matter, but his mobile phone was found switched off. Meanwhile, Shibli Rubayat is currently in jail in a bribery and corruption case.

However, admitting that Tk 40 lakh came into his own bank account, Sayedur Rahman said, "I have informed BSEC in writing about this matter. The matter is being looked into by the ACC. However, I do not know about sending it to CID."

There are also allegations against Javed of manipulation in the country's stock market. He, along with Abul Khayer and his associates, was involved in share manipulation of Sonali Paper and Board Mills. For this reason, BSEC fined Javed Matin Tk 2 crore 1 lakh.