The police unit of the Securities and Exchange Commission has arraigned the BGL Group and its officials at the Chief Magistrate Court Zone 6, Abuja on charges of criminal conspiracy, breach of trust and cheating.
The offences are contrary to Sections 96, 312, 322 and 323 of the Penal Code Law, Chapter 89.
SEC, in a statement on Thursday, described the development as a major lift for the Nigerian capital market in the bid by the apex regulator to check and discourage infractions in the market.
The Deputy Managing Director of the company, Chibundu Edozie, was docked along with three others.
They were alleged to have conspired among themselves with some other staff members of BGL and committed the offenses against the investing public which includes Mahmoud Usman, Ann Awase Orsule, and Sylvanus C. Ghasarah.
Others are Eno Efanga, UN Staff Thrift Credit Cooperative Society of Anambra State Abuja Office and Adejoke Atte, among others who filed complaints against them before SEC.
The Managing Director of the company, Mr. Albert Okumagba, was not in court and had no representation.
However, Edozie was granted bail in the sum of N1m with one surety in the like sum who should not be less than a level 12 officer in public service and resident in Abuja.
The Presiding Magistrate, Chief Magistrate Chinyere Nwecheonwu , after the arraignment, adjourned the hearing to November 6, 2017.
SEC said in exercising its responsibility as enshrined in the Investments and Securities Act, in tackling civil cases through its Administrative Proceedings Committee, it recently banned Okumagba and Edozie, from participating in capital market activities for 20 years.
The commission also ordered Okumugba’s companies to refund to investors over N2bn.
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 Notes and Guaranteed Premium Notes, among others.
SEC said in a bid to obtain justice for the complainants and grant all parties fair hearing, it presented the matter before its APC which sat and decided on the matter.
“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,” SEC stated.
The APC decided that by their actions and/or omissions, BGL Securities Limited, BGL Asset Management Limited, Okumagba, Edozie and other 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 N25m 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 N24.03m to the National Open University Staff Cooperative Multipurpose Society.