The National Accountability Bureau (NAB) has recovered 70 percent embezzled amount in Sherwani Securities fraud case in the form of cash, shares and other assets of the main accused, out of which 28.8 percent of the investment claims have been reimbursed to affectees by Islamabad Stock Exchange on the instruction of the bureau.
NAB Rawalpindi Director General, Rear Admiral Pervez Asghar disclosed this on the occasion of cheque distribution ceremony among 10 affectees here on Thursday. The bureau started investigation in the financial scam on 25 May, 2004, after they got information that as member of Islamabad Stock Exchange, Mashkoor Ahmed Sherwani, owner of Sherwani Securities, in connivance with Khalid Hussain Sherazi and others collected over Rs 61 million from 294 investors.
The director general said that the amount thus collected by the firm was, instead of being investing in the shares business, embezzled by the said accused who issued false documents to the clients. They had also issued post-dated cheques to the clients which were dishonoured. The accused disappeared after defrauding the investors, the NAB official said.
Chaklala Branch of Sherwani securities was actively involved in such illegal activity and Babar Tahseen and Khalid Hussain Sherazi, both managers of this branch deprived their clients of Rs 5 million, NAB arrested both the accused whereas the third accused managed to escape from the country. While in custody they opted for plea bargain and deposited an amount of Rs 5,462,677.
NAB had filed reference on December 10, 2005 against the accused in the Accountability Court which convicted Babar Tahseen and Khalid Hussain Sherazi. Mashkoor Ahmed Sherwani was declared as absconder by the court and awarded three years imprisonment.