The Investments and Securities Tribunal sitting in Abuja has fined Davandy Finance and Securities Ltd N101.3 million for fraud and breach of the code of conduct for capital market operators.

The company's Abuja branch manager, Mr. Abodunde Abiodun, has also been indicted and referred to the Economic and Financial Crimes Commission for further prosecution for culpability in the fraud.

Chairman of the Tribunal, Dr. Nnenna A. Orji, in the judgment asked the firm to repay N98.8 million as shares buy-back and N2.5 million for other damages.

The company and its manager have been barred from market operation.

The company and its officer were found guilty of fraudulent sale of 500,000 Wema Bank Plc shares belonging to an investor without authorization and also for fraudulent conversion of another N117million invested with them.

Giving judgment in an appeal filed by Mrs. Olabisi Titiola and 8 Others against the Securities and Exchange Commission (SEC), Davandy Finance and Securities Limited and 11 others, the Tribunal found that the company violated the provisions of Rule 182 (a) (1) of the SEC Rules and Regulations and article 1(v) of the code of conduct for Capital Market Operators by disposing of the 500,000 units of Olayinka Temitayo's Wema Bank Plc shares without authority.

The Tribunal ordered Davandy Finance and Securities Limited to buy back within 30 days from the date of the judgment 500,000 units of Wema Bank plc shares for Olayinka Temitayo and the accrued benefits thereon from August 3, 2009 till date.

"Failure to comply with the decision shall attract a penalty of N5000 per day until it is fully paid pursuant to Rule 7 of the SEC Rules and Regulations," a statement from Kenneth Ezea, the Head, Public & International Affairs of the Tribunal said.