SEC Bans BGL Boss Okumagba, Deputy Edozie For 20 years
…To Pay Delta State Ministry Of Finance N1.88b
…Removed As President Of Chartered Institute Of Stockbrokers
… To Refund N24.03m To National Open University
The Securities and Exchange Commission (SEC) has banned the Managing Director of BGL, Mr Albert Okumagba and his Deputy, Mr Chibundu Edozie, from participating in capital market activities for 20 years.
SEC decision is contained in a circular titled, “SEC Administrative Proceedings Committee (APC) gives its decision on BGL Securities Ltd and 22 Others posted on the commission’s web site.
The commission also ordered Okumugba’s companies to refund to investors over N2 billion.
The ban is coming on the heels 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 and 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 6,2016.
According to the circular, “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 APC decided that by their actions and/or omissions BGL Securities Limited, BGL Asset Management Limited, Okumagba, Edozie and 22nd respondents engaged in acts capable of adversely affecting investors’ confidence in the capital market.
The circular further explained that APC decided that the registration of BGL Securities and BGL Assets Management be cancelled, while Okumagba and that 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.” the circular pointed out
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.
SEC’s circular 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.
Apart from the suspension, Okumagba was also removed as the President of Chartered Institute of Stockbrokers