… Customers Money Trapped While Company Still Onboarding New Investors
Investment platform, Kwakol Markets Limited, recently ran into trouble as it was unable to meet customers’ withdrawal requests.
But the platform attributed the disappointment to “issues with service providers.”
However, after months of excuses to customers, the investment firm finally opened up to investors whose funds had been trapped that the delays were due to misappropriation by its Chief Executive Officer, Dr. Ishaku Yakubu Teri.
But the confession was quietly communicated to some customers in order not to scare investors as the firm was still accepting investments from unsuspecting customers.
“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,” the firm wrote to a customer whose investments were among those trapped for months.
An investigation by NewsNGR shows that Kwakol Markets offers prospective investors a range of trading platforms whether on MetaTrader 5 or the convenient Web Trader.
Kwakol Markets is a corporate authorized Representative of HLK GROUP PTY LTD, which holds a Financial Services Licence from the Australian Securities and Investments Commission (ASIC).
The firm’s website offers asset classes including Contract for Differences, Stocks Trading, Commodities Trading, Indices Trading, Trading, and Forex Trading.
For months, investors’ funds have been trapped, causing panic on the fate of the funds.
After buying time, the investment firm said after discovering the fraud, it took immediate action to mitigate further risks and began the recovery process.
Kwakol said, “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.
“Operational Restructuring: 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 towards asset recovery and client relations.”
Customers’ Withdrawal Requests May Not Be Met Soon
NewsNGR found that the customers whose funds are trapped will not recover their money anytime soon. One of the reasons disclosed by the firm is that the funds have to be recovered from the CEO.
“Due to the ongoing recovery efforts, we are unable to fulfill withdrawal requests at this time. We however, remain committed to pursuing every possible avenue to restore your funds. We acknowledge the frustration this may cause and ask for your continued patience as we work towards a resolution,” the document released to NewsNGR said.
The customers will also forfeit the profits generated from their investments during the recovery period.
“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,” the document further stated.
The firm is also unsure of how long it would take to conclude the recovery process. It is understood that the firm sees the period as a “long-term commitment”.
“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,” the firm confessed in the document.
Company Backlisted By Advisory Firms
NewsNGR also found that daytrading.com released a warning to investors to avoid Kwakoli Markets.
“Kwakol has recently frozen a large number of accounts with little or no reason given to clients. This has included removing the ability to make withdrawals. We cannot advise joining Kwakol at this time,” the investment advisory website said.
Checks on its website reveal that the troubled firm is still onboarding new investors into its platform.