Media reports confirm that the Securities and Exchange Commission (SEC), has banned Mr. Albert Okumagba, BGL managing director and Mr. Chibundu Edozie, his deputy, from participating in capital market activities for 20 years.
In addition to the ban, the commission also ordered Okumugba’s companies to refund to investors over N2 billion naira, reports reveal.
The ban came as a result of complaints by investors against Okumagba and his company over failure, refusal and or/neglect to liquidate their investments in both the Guaranteed Consolidated dated notes, Guaranteed Premium Notes, among others.
The circular stated that the commission, in a bid to obtain justice for the complainants and grant all parties fair hearing, presented the matter before its APC, which sat on February 6, a Nigeria CommunicationsWeek report says.
“During the proceedings testimonies and documentary evidence were tendered by various parties and upon conclusion of the proceedings its APC arrived at a decision which has been approved by the relevant authority,” the circular read.
After due deliberation, the APC decided that by its actions and/or omissions BGL Securities Ltd, BGL Asset Management Ltd., Okumagba, Edozie and 22nd respondents engaged in acts capable of adversely affecting investors’ confidence in the capital market.
The committee added that it decided that the registration of BGL Securities and BGL Assets Management be cancelled, while Okumagba and Edozien be banned from capital market operations for a period of 20 years.
Furthermore, the circular also stated that the two companies would also pay a fine of N25 million for breaching Rule 1(iii) of the Code of Conduct for capital market operators.
“Other than Okumagba and Edozie, Peter Adebola and Ashley Osuzoka have also been banned for five years and four years respectively,” the statement added.
Apart from the ban placed on the company and some monetary fines, the APC also directed the companies to refund N24.03 million to the National Open University Staff Cooperative Multipurpose Society.
It also ordered the companies to pay Delta State Ministry of Finance N1.88 billion; Azort Nigeria N204.83 million; Prof Ojuah Umunnakwe the sum of N10.97 million; N3.04 million to Orsule Awase and N10.74 million to Mahmoud Usman.
The SEC had earlier suspended Okumagba and BGL from operating in the market about a year ago and had been investigating the complaints. Okumagba has also been removed as the President of Chartered Institute of Stockbrokers.