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SEC bans Okumagba for 20yrs over N2.2bn fraud

 

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For the management and staff of BGL Securities and BGL Assets Management Limited led by debonair businessman, Albert Okumagba things have finally fallen apart as the Securities and Exchange Commission (SEC) has cancelled the registration of both companies as well as placed a ban on Okumagba along with his staff and associates over allegations bordering on fraud.

Albert Okumagba and Chibundu Edozie were fined N100, 000 for breach of rule 1(III) of the code of conduct for capital market operators and their employees and each banned for 20 years from engaging in capital market activities.

It was gathered that there were several complaints against BGL Securities Limited and BGL Assets Management Limited over failure, refusal and/or neglect to liquidate their investments in both the Guaranteed Consolidated Notes and Guaranteed Premium Notes.

But what really did Okumagba and his associates in was the outcome of the investigation conducted by the Administrative Proceedings Committee of SEC, where it was discovered that the two capital market entities were
indebted to different companies to the tune of ₦2,184,474,991.65.

The capital market regulator disclosed that “upon investigation of the complaints, it was also revealed that the act was carried out through Albert Okumagba and one other respondent.”

In a bid to obtain justice for the complainants and grant all parties fair hearing, the matter was presented before the Administrative proceedings Committee of the Securities and Exchange Commission (SEC).

Upon confirmation that all parties to the matter had been served hearing notices, the SEC APC sat and heard the matter on February 6, 2016. During the proceedings testimonies and documentary evidence were tendered by various
parties.

The SEC APC said it arrived at a decision which has been approved by the relevant authority.

The decisions of the Committee are as follows: “that by their actions and/or omissions, 21 of the 23 respondents engaged in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market. That BGL Securities Limited refund the sum of N855,539,809.55.”

The committee added that “pursuant to Section 304 of the Investments and Securities Act 2007 all information on possible criminality in this matter be and is hereby referred to the appropriate law enforcement agencies and the Enforcement Department of the Commission shall follow up and ensure that the matter is brought to a logical conclusion.”

 

The Committee further passed the following sanctions on the under listed respondents as follows: BGL Securities Limited, cancellation of registration and fines of N5million, N10million and N7million for breach of rule 1(III) of the code of conduct for capital market operators and their employees rules 22(4) and 63 of the SEC rules.

Also, BGL Assets Management Limited had its registration cancelled and was fined N5million for breach of rule 1(III) of the code of conduct for capital market operators and their employees.

Albert Okumagba and Chibundu Edozie were fined N100, 000 for breach of rule 1(III) of the code of conduct for capital market operators and their employees and each banned for 20 years from engaging in capital market activities.

Peter Adebola was handed down a five year ban but no fine while Joseph Ashley-Osuzoka was banned for four years and
fined N100,000 for breach of rule 1(III) of the code of conduct for capital market operators and their employees.

Victor Obire got three years ban from capital market activities and was fined N100,000 for breach of rule 1(III) of the code of conduct for capital market operators and their employees. Nkechi Azubuike, Adekule Alli, Mohan Lalchandani, Anthony Nwozor and Oluwo Oluwale were all banned for one year and fined N 100,000 for breach of rule 1(III) of the code of conduct for capital market operators and their employees.

Ande Ewubare, Victor Inyang, Hilary Eludu, Ehime Alofoje and Ofem Mbui Omni bagged two years ban from capital market activities and were fined N100,000 for breach of rule 1(III) of the code of conduct for capital market operators and their employees. Joshua Sesan Adetiloye was banned for one year from capital market activities with no fine.

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