Broker Cluj sends 150 employees home, following fraud charges

The management of brokerage firm Broker Cluj (BRK on the Stock Exchange), one of the largest independent brokerage companies on the Stock Exchange has announced that, following a decision by the National Securities Commission (CNVM) to suspend the company’s activity, 150 employees of the Cluj-based branch were sent on a two-week unpaid leave. They account for around 7.5% of the almost 2,000 employees working on the capital market at the end of last year. Last year, Broker handled deals worth 645m RON (175m euros), ranking 9th among brokers, with a 3.66% market share. Since Friday, Broker Cluj is no longer authorised to conclude transactions, either on behalf of its clients or on its own behalf, after CNVM decided to suspend its activity for two weeks in the wake of fraud committed by the manager of the Deva branch of the brokerage company, put at over 200,000 euros. The manager was charged with using clients’ money for her own benefit, handing them forged receipts and account statements. If proven to be true, this would be the most serious fraud on the capital market over the last few years.