Personnel of Integrated Capital Services Limited (ICSL), a financial solution company which also provides stock broking services, have been engaged in a running battle with an investor who is determined to collect promised returns on a N50million investment the company had persuaded him to invest in the stock market. 

ICSL had persuaded the Chief Executive Officer of Tamstel Nigeria Limited to invest the N50million in its stock market focused product, aptly named I-QUITY RANGE INVESTMENT in July 2007. ICSL had given the investor the assurance of a minimum guaranteed return of 100 percent which would amount to a return of N100million at the end of a 12-month period, the agreed tenor of the investment.

Apparently emboldened by the general optimism of that period when the Nigerian stock market was unabashedly bullish, ICSL further offered to a N50million margin line facility to Tamstel with a guaranteed minimum return of 75 percent (net of interest charge). This would amount N37.5million profit to Tamstel at the 12 months maturity of the tenor of the investment.


The expectations of the total N137.5million (inclusive of initial investment) return to Tamstel by ICSL could not effected when at the expiration of the investment tenor in September 2008, ICSL could only give excuses for its inability to pay up on schedule.


Tamstel insisted, through a letter or payment demand to ICSL, that it could not accept the excuses offered for its refusal to pay its N50million equity participation and the documented returns promised it since the management of the investment portfolio was at its (ICSL) sole discretion without recourse in any way or manner to Tamstel. The client investor, according to the letter of payment demand, alleged that it believed that ICSL made huge and stupendous returns from investing the money in the stock market and specifically accused ICSL of scamming it in what looks like a 419 scheme.  


After several disappointing responses to its call for payment, the client investor invited the Police Special anti-fraud Unit (SFU) into the matter. After several stakeouts, the men of the SFU arrested and detained senior management staff of the firm. A schedule of repayment was agreed with the police at SFU.


Mr. Adeniyi Elumaro, Managing Director of ICSL confirmed that Tamstel, indeed, invested in ICSL with the promise of returns on the investment but this could not be realized because the stock market witnessed price slides for the most part of this year.


“It’s true that Tamstel invested N50million in the stock market through us and we also provided the company a margin line facility, but at maturity of the tenor we could not live up to the promise of returns we made to Tamstel because the stock market turned bearish dashing all our expectations. Though we explained the reasons we could not pay the promised return they refused to understand and thereafter brought in the police who arrested my staff. But we have been able to resolve the matter at the police station.” Mr. Elumaro said.