The Administrative Proceedings Committee (APC) of Securities and Exchange Commission (SEC) has published its findings and rulings on cases of irregularities brought against some operators in the market.
The committee found the accused operators guilty of the charges levelled against them by their clients and subsequently slammed various degrees of penalties on them including life bans and periodic suspensions from operating in any capacity in the securities market.
Those slammed with life bans include Mr Albert Okumagba, the group Managing Director, BGL Group and his deputy, Mr Chibundu Edozie and Mr George Nchedo Okafor, MD of Ideal Securities & Investment Limited.
Other officials of BGL sanctioned include Mr Peter Adebola, who was banned for five years, Joseph Ashley-Osuzoka was banned for four years with a fine of N100,000, Joshua Sesan Adetiloye and Ms Mshelia Bittinger were banned for one year.
Others are Nkechi Azubuike, Victor Inyang, Hilary Eludu, and Andre Ewubare who were slammed with two-year ban with a fine of N100,000 each, while Anthony Nwozor was banned for one year with a fine of N100,000.
Also, Okumagba and Edozie were directed to pay N100,000 fine each, while BGL Assets Management Ltd and BGL Securities Ltd.,were directed to pay N23.2 million and N10.1 million respectively. The circular stated that another BGL company, BGL Plc, was directed to pay a fine of N5 million.
The SEC has made its ruling public on its website to serve as protective advisory to prospective clients and deterrent to other operators who are expected to uphold the tenets of transparency and corporate integrity in all their dealings.
The SEC published their findings as published below on their Website this week:
Summary of the Decision of the SEC Administrative Proceedings Committee (APC) in the Matter of APC/2/2016: Ideal Securities & Investment Limited V. Mr. George Nchedo Okafor
The Commission on September 12, 2008 received a petition from the complainant alleging various misconducts against the Respondent. Pursuant to this complaint, the Commission conducted investigations and observed that the respondent had carried out actions which were in breach of the provisions of the Investment and Securities Act 2007, as well as the SEC Rules and Regulations.
To afford all parties fair hearing, the Commission on December 7, 2016 convened an Administrative Proceedings Committee (APC) sitting to hear the matter. During the hearing, testimonies and documentary evidence were tendered by the parties.
Upon conclusion of the hearing, the SEC APC has reached a final decision which has been approved by the relevant authority. The decisions of the Committee are as follows:
- That the Respondent engaged in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market.
- That the Complainant should take appropriate steps to recover whatever monies it lost as a result of the Respondent’s conduct.
- That the Respondent is hereby banned from being employed anywhere in the Nigerian Capital Market and from holding the position of a Director in any corporate entity operating in the Nigerian Capital Market.
- That pursuant to Section 304 of the Investments and Securities Act 2007 all information on the issues of forgery of board resolution and issuance of dud cheques be and is hereby referred to the appropriate law enforcement agencies.
Summary of the Decision of the SEC Administrative Proceedings Committee (Apc) in the Matter of APC/1/2015: Rivers State Ministry of Finance & 31 Others V. BGL Plc & 31 Others
The Commission received 32 complaints between 2012 and 2015 against the 1st to 4threspondents over certain conducts in relation to operations of their Guaranteed Consolidated Notes (GCN) and Guaranteed Premium Notes (GPN). Investigations revealed that the 1st to the 4th respondents had through the 5th to 32nd breached some provisions of the Investment and Securities Act (ISA) 2007 as well as the SEC Rules and Regulations, which resulted to a loss of about N5,769,993,553.67 for 32 innocent investors.
To ensure the innocent investors obtain justice; while also granting all parties fair hearing, the Commission invited all parties before its Administrative Proceedings Committee (APC). Having properly issued hearing notices, the APC sat on December 8, 2016 to hear the matter. In the course of the hearing, testimonies and documentary evidence were tendered by various parties.
Upon conclusion of the hearing, the SEC APC has reached a final decision which has been approved by the relevant authority. Consequently, the Committee has passed the following sanctions on the under-listed persons: