Lekoil’s Shares Tumble 70% After It Reveals Alleged Fraud

Shares in Lekoil crashed by more than 70 per cent on Tuesday as investors responded to news that the Nigeria-focused oil producer had paid $600,000 in fees for a $184m loan that did not exist, the Financial Times reported. The Aim-listed company, which Mark Simmonds, the UK’s Africa minister under David Cameron, recently joined as a non-executive director, will now have to find alternative financing from shareholders to fund the development of its key asset, the Ogo field in Nigeria. Trading in Lekoil was suspended on Monday after the company said it had not secured cash from the Qatar Investment Authority and might have been tricked by individuals “masquerading” as its representatives. Read more