Capital market: SEC charges brokers, others on infractions
…. stakeholders call for update on litigation portal
As the Securities and Exchange Commission (SEC) continues investigation in allegations of unclaimed dividend fraud and other related capital market fraud cases, which have in recent times, impacted on market confidence, more operators are likely to be jailed.
SEC revealed recently that it has commenced court proceedings against a suspended dealing company and its officials who were arraigned at the Chief Magistrate Court Zone 6, Abuja, on charges of criminal conspiracy, Breach of Trust and cheating contrary to Sections 96, 312, 322 and 323 of the Penal Code Law, Chapter 89.
Daily Times Nigeria gathered that the suit may be the last result, hence most of the rulings of the SEC’s Administrative Proceedings’ Committee (APC) or the Investment and Securities Tribunal (IST) have been challenged in court appeal courts.
Daily Times findings showed that as at 1st October, 2017, 10 cases in the court of appeal challenging rulings by the APC or IST, were contained in the SEC website, most of which have been filed over 10 year ago.
However, the cross section of stakeholders in the Nigerian capital market have called on the SEC to update its litigation portal, hence cases contained in SEC’s litigation portal , where cases filed over 10 years ago.
However, the latest court case, which however was not also found in the SEC website, according to the SEC , revealed that Chibundu Edozie a deputy MD in a suspended dealing company was docked along with three other accused were alleged to have conspired among themselves with some other
staff of his staff alleged to have committed the offenses against the investing public, which includes Mahmoud Usman, Ann Awase Orsule, Sylvanus C. Ghasarah, Eno Efanga, UN Staff Thrift Credit Cooperative Society of Anambra State Abuja office and Adejoke Atte among others who filed complaints against them before the SEC.
Edozie, SEC revealed was granted bail in the sum of N1million with one surety in the like sum who should not be less than a Level 12 officer and resident in Abuja.
Presiding Magistrate, Chief Magistrate Chinyere Elewe Nwecheonwu after the arraignment, adjourned the hearing to November 6, 2017.
Meanwhile, cross- section of capital market stakeholders have called for update on outstanding cases some of which challenged rulings by SEC’s APC, IST rulings, most of which have remained in court for the past ten years.
The stakeholders who preferred to remain anonymous said that for market-related appeal cases to last over ten years in court demonstrates the fear of many investors thay they may not get justice in the nation’s court.
A stock broker said, “ Justice delayed is justice denied” and for a case to last for over ten years in court showed that he legal infrastructure to support the market is not truly in place, the regulators promoters the case they want to, while others that challenges them, they keep quiet over,” a broker who preferred anonymity said.
Daily Times findings through SEC’s litigation portal in its website showed that ten cases have been pending since 2008 January.
Some of the cease contained in the commission’s website which have lasted for over ten years include Suit No. FHC/L/CS/1001/08 dated 01-Jan-2008, ‘Thomas Kinsley Securities ltd & Anor vs SEC & 9 ors.”
The report showed that The Plaintiffs filed this action at the Federal High Court, Lagos against the Commission and 9 other respondents by a writ of summons dated June 30, 2008.
Also, Suit No. FHC/MN/CS/15/08, “Wealthgate Multibiz International Ltd Vs SEC & CBN” .The Plaintiff filed this action at the Federal High Court Minna, Niger State, against the Commission and the Central Bank of Nigeria (CBN) by an originating summons dated April 30, 2008.
And also SUIT NO. FHC/MN/CS/14/08 “Silvertrust Global Investment Ltd Vs SEC & Central Bank of Nigeria (CBN)” .The Commission is the defendant in the above mentioned matter which has been filed at the Federal High Court Minna, Niger State.
Also, the case, Suit No. FHC/L/CS/440/2008 “Ayo Akadiri VS SEC” has been filed against the Commission at the Federal High Court Lagos.
Other cases worthy of mention which updates are not contained in the commission’s website include Suit No: FHC/L/430/08 “Rt. Hon. Uduimo Itsueli Vs SEC” which had been filed at the Court, by the applicant, Dr Uduimo Itsueli, the Chairman of Cadbury Nig. Plc, against the decision of the Administrative Proceedings Committee (APC) of the Commission.
Also, include SUIT NO. FHC/L/CS/414/08 “OLUSEGUN OYEWOLE VS SEC & ORS” The suit has been filed at the Court, by the applicant, Olusegun Oyewole, one of the non-executive Directors of Cadbury Nig. Plc, against the decision of the Administrative Proceedings Committee (APC) of the Commission.
According to the SEC litigation portal, Suit No: IST/ APP/01/08 “Cadbury Nig PLC VS SEC & APC review of notice of appeal.”The Appeal was filed by the Appellant against the decision of the Investments and Securities Tribunal (IST), delivered on November 12, 2008.
Also, FHC/L/CS/5396/08 “Edmund Chinonye Obiagwu VS Universal Insurance Plc & 3 Ors” The action was filed by the Plaintiff at the Federal High Court, Lagos against Universal Insurance Plc and 3 others including the SEC by a writ of Summons dated October 28, 2008.
The Appeal No: IST/APP/04/08 “Bluechip Acquisition & Inv. Co. Ltd VS SEC, NSE & Dr. Ndidi Okereke-Onyuike” This appeal was filed by the Appellant at the Investments &
Securities Tribunal (IST), Abuja, against the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE) and Dr. Ndidi Okereke-Onyuike as parties in the appeal.
FHC/L/CS/798/09 “African Petroleum Plc & 14 Others Vs Mr. Femi Otedola & 13 Others”. The above suit was filed at the Federal High Court Lagos by 14 shareholders of African Petroleum Plc suing through the company, against Mr. Femi Otedola and 13 others, including the Commission as the 14th defendant.
The stakeholders, who spoke to Daily Times Nigeria expressed the need for the commission to update market community on development in the cases and if necessary, the cases that have been struck out by the court, should be communicated to the market, while new cases also need to be entered into the commission’s portal.
Bonny Amadi
