Orders coy to refund N2bn
SECURITIES and Exchange
Commission, SEC, has banned
Mr. Albert Okumagba, BGL
Managing Director and his deputy,
Mr. Chibundu Edozie, from
participating in capital market
activities for 20 years.
This was contained in a circular
posted on the commission’s web
site Thursday night entitled “SEC
Committee, APC, gives its decision
on BGL Securities Ltd and 22
The commission also ordered
Okumugba’s companies to refund
to investors over two billion naira.
The ban followed 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 and Guaranteed Premium
Notes, among others.
The circular pointed out 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.
“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,” it stated.
The APC decided that by
their 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.
It added that the APC 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.
It stated further 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,” it added.
The APC, apart from the ban
placed on them and some monetary
fines, directed the companies
to refund N24.03 million to the
National Open University Staff
Cooperative Multipurpose Society.
It also directed 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.
SEC had earlier suspended
Okumagba and BGL from
operating in the market a year
ago and had been investigating
the complaints. Okumagba was
also removed as the President of
Chartered Institute of Stockbrokers