SEC has also withdrawn the operating
licences of Partnership Investment Company Plc and Partnership
Securities Limited. The Chairman of the companies, Mr. Henry Omoragbon,
was also suspended for a period of five years from engaging in capital
market activities in Nigeria.
In a statement on Tuesday, the regulator
said, “Pursuant to Section 38 (4) of the Investments and Securities
Act, 2007 and Rules 34 (1), (a) of the SEC Rules and Regulations made
pursuant thereto, the certificate of registration of Partnership
Investment Company Plc is hereby cancelled without prejudice to the
recovery of all existing liabilities due to the complainants and
penalties payable to the commission.
“Mr. Victor Ogiemwonyi is hereby banned
for life from engaging in capital market activities in the Nigerian
capital market and ordered to pay a penalty of N100,000 only for breach
of Rule 1 (iii) of the Code of Conduct for Capital Market Operators and
their Employees as contained in the SEC Rules and Regulations, made
pursuant to the Investments and Securities Act, 2007.
“He is also banned for life from holding
directorship position in any public company in Nigeria for his
unprofessional conduct in respect of the activities of the both
companies.
“Mr. Henry Omoragbon is hereby suspended
for a period of five years from engaging in capital market activities
in the Nigerian capital market and ordered to pay a penalty of N100,000
only for breach of Rule 1 (iii) of the Code of Conduct for Capital
Market Operators and their Employees as contained in the SEC Rules and
Regulations made pursuant to the Investments an Securities Act, 2007.”
It also stated that pursuant to Section
304 of the Investments and Securities Act, 2007, all information on
possible criminality in the matter would be referred to the appropriate
law enforcement agencies.
Some directors of Partnership Investment
Company, Mr. Ojetunde Taiwo, Mrs. Olufunke Ogiemwonyi, Mr. Frank
Ogiamien, Mr. Adeusi Aladejola Alexander and Mrs. Arese Ugwu, were also
suspended for a period of five years from engaging in capital market
activities, banned from holding directorship positions in any public
company in Nigeria for the said period and ordered to pay a penalty of
N100,000 each for breach of Rule 1 (iii) of the Code of Conduct for
Capital Market Operators and their Employees.
Mr. Eseha Augustine Enejeta, a manager
in Partnership Investment Company, was suspended for a period of one
year and ordered to pay a penalty of N100, 000 only for breach of the
same rule.
In February this year, about 300
investors, who were victims of the alleged N4.8bn capital market fraud
case levelled against Ogiemwonyi, vowed to get back their monies after
petitioning SEC and the Nigerian Stock Exchange.
One of the affected investors, Mr.
Arnold Ekpe, had reported the development to the Economic and Financial
Crimes Commission, and accused the former Partnership Investment boss of
fraudulently converting over N1.2bn and $80,000 due from the sale of
96,077,872 shares of Ecobank Transnational Incorporated Plc to his
personal use.
Other affected investors, however, have equity portfolios with the company.
The alleged fraud was said to have been
committed under the Partnership Securities Deposit Account platform,
which is an hybrid scheme that allows for additional gains on shares
aside of dividends, bonuses and rights issues.
The company was said to have advised its
clients, who were shareholders in different quoted firms, to buy into
the scheme and make additional return of 10 per cent on their
investments, payable every six months.
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