Alarm blow: Another micro finance scam uncovered

Alarm blow: Another micro finance scam uncovered

Alarm blow: Another micro finance scam uncovered

Photo credit:Graphiconline/ Stephen Mortson, busted

The Bureau of National Investigations (BNI) has uncovered another scam involving a non-bank financial institution, First Assurance Lending Services in Accra.

This comes in the wake of a number of micro finance schemes being shut down after a series of agitations, by some customers of some of the micro finance companies in the Brong Ahafo Region which led to the Bank of Ghana (BoG) taking a firm decision to ensure that their deposits, which have been locked up in the companies, were paid.

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The central bank also decided to liquidate the assets of two of the micro finance companies and use the proceeds to pay the deposits of the customers.

Although, First Assurance Lending Services was licensed by the Bank of Ghana (BoG) to provide lending services for its clients, information gathered was that the company rather collected deposits with the promise of providing nearly 47 per cent interest on the deposits of clients.

A BNI investigation which was prompted on a whistle-blower has led to the arrest of the Chief Executive Officer of the company, Stephen Mortson, who is currently in custody after he was remanded by the Accra Circuit Court last Tuesday.

The extent of the scam is yet to be established, although one client is reported to have deposited nearly GH¢600,000.

A source at the BNI told the Daily Graphic, that the suspect was scheduled to reappear before the circuit court on February 1, 2016.

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The source appealed to members of the public who might have deposited money with the company to report to the BNI to assist in investigations.

Meanwhile, the four micro finance scam operators who were brought before the circuit court, Martin Delle, Managing Director of DKM Financial Services; Noel Nortey, Nkoranza Branch Manager of God Is Love Fun Club; Charles Asum, Managing Director of Jastar Group of Compa­nies and Monica Afriyie popularly called Maame Korkor, Managing Director of God Is Love have been granted bail ranging from 20 million to 80 million cedis.

They will reappear in court on February 11 but instructed to report to the BNI every Thursday.

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