Moshihor Securities scam: Thousands lose everything, face financial ruin

Farhana Zafrin, a former private sector organisation employee, had done well for herself, building a life savings of Tk80 lakh, after working for 25 years.

To put her money to use, she invested almost all of it through brokerage firm Moshihor Securities.

One day, when she picked up the newspaper, she came across a news item that left her cold: Moshihor had scammed thousands of people.

Since then, Farhana has fought to get her money back.

Others, too, have joined her.

Today (10 April) at a press conference organised at the office of the Capital Market Journalists' Forum (CMJF) in Dhaka, victims of the scam shared their stories and sought intervention from capital market regulators as well as the chief adviser.

In tears, Farhana said, "I've lost everything. I don't know what to do now."

The Moshihor scam came to light in August 2023 following a report by the Dhaka Stock Exchange (DSE), which showed the brokerage firm had embezzled around Tk161 crore.

There was a shortfall of Tk6.85 crore in customer accounts and unauthorised sale of shares worth Tk9.24 crore.

The brokerage had approximately 200,000 beneficiary owner (BO) accounts, of which about 44,000 are currently active.

The massive fraud has left many investors in despair. 

At the press conference, Farhana Zafrin added, "Moshihor Securities took away all the money I saved. Now I'm a beggar on the streets. Isn't there anyone in Bangladesh who can bring these fraudsters to justice? I'm appealing to the Chief Adviser for help."

Another victim, Faruq Ahmed, said, "They scammed us in a very sophisticated way. The cheques they issued were rejected by the bank. We lost everything by investing through them. We want justice and urge the chief adviser to step in."

Gazi Md Elias, another investor, read a written statement at the press conference.

He explained how a special software was used to misappropriate investors' funds and shares.

While externally the portfolios appeared normal, shares were being sold off behind the scenes and the money withdrawn.

"We don't understand how such fraud went unnoticed by the country's top regulators — the BSEC and DSE. Many of us have submitted written complaints, but we've seen no progress."

He also mentioned that many investors are senior citizens and retired government or private employees who had invested their pension and retirement funds.

Now, they are living in extreme hardship.

Investors have also suffered additional losses from not receiving dividends, bonus shares, and rights shares for 2023 and 2024. Many were relying on this income to support their families, and are now completely devastated.

Now stripped of everything, the investors ask one question: Will justice be served?