N28.9bn fraud: SEC reiterates commitment to protect investors’ funds

With the arrest of Albert Okumagba, Managing Director of BGL Securities Limited and  BGL Asset Management Limited at the weekend in Abuja over alleged misappropriation of investors fund, the Securities and Exchange Commission (SEC) has once again reiterate commitment to protect investors fund in the Nigerian Capital market.

Speaking with the Nigerian Tribune Newspaper, source at SEC said it would not rest on its oars until offenders are brought to justice as the regulatory body harps on zero tolerance to non compliance to regulations.

It will be recalled that Mr Okumagba and his companies were suspended last May after failing to appear before the APC to respond to allegations of corruption.

SEC had banned the Managing Director of BGL Plc,  Okumagba and his deputy, Chibundu Edozie, from carrying out capital market activities for 20 years ,and ordered his companies to restitute investors over N2 billion.

The suspect is alleged to have diverted the sum of N28.9 billion being proceeds of private placements of 4.3 billion ordinary shares of 50k each at N7.00k per share in 2007.

The company, whose subsidiaries include BGL Capital, BGL Private Equity, BGL Security and BGL Asset Management, allegedly lured 50 investors from across the country into subscribing to the company’s shares, promising them options of liquidity and exit within two years.

The liquidity and exit options offered the investors, which were contained in its memorandum of private placements, implies that the investors would get value for their investments through one of its subsidiaries, BGL Securities Limited. But BGL moved the sum of N28.9 billion to an offshore account belonging to one of its subsidiaries, BV1 Club 1, British Virgin Island.

The suspect was also said to have refused the investors the opportunity to liquidate their assets as promised.