The Securities and Exchange Commission (SEC) which is the apex regulator in the Nigerian capital market appears to have doubled its drive against errant operators. BGL and its senior executives were brought before an Abuja Magistrate court on charges of criminal conspiracy, Breach of Trust and cheating contrary to Sections 96, 312, 322 and 323 of the Penal Code Law, Chapter 89. In The executives charged include Group Managing Director (GMD) of the firm, Albert Okumagba and Deputy Managing Director (DMD) Chibundu Edozie. SEC had recently banned a prominent stockbroker Victor Ogiemwonyi for life over alleged fraud.
SEC had in 2015 placed a 20 year ban on Okumagba and Edozie from participating in capital market operations in the country. Peter Adebola and Ashley Oshuoka were banned for 5 years. The operating licences of BGL Securities and BGL Asset Management were also withdrawn, and the two firms were fined the sum of N25 million for breaching the code of conduct for capital market operators. The two companies were also ordered to refund N2 billion belonging to investors and N25 million to the National Open University Cooperative Society.
Why the firms were charged to court
BGL was accused by several individuals and bodies of refusing to liquidate their investments in the company’s Guaranteed Consolidated Notes and Guaranteed Premium Notes.SEC subsequently referred the matter to its Administrative Proceedings Committee (APC) which looked into the matter, and gave its recommendations.
