Capital market abuses: SEC slams life ban on top businessman

Securities and Exchange Commission, SEC, on Tuesday banned Managing Director of Partnership Investment Company Plc and Partnership Securities Limited, Victor Ogiemwonyi, from operating in the capital market for life.

Apart from being banned for life from holding directorship position in any public company in Nigeria for his alleged unprofessional conduct in the Nigerian capital market, Mr. Ogiemwonyi would also pay a penalty of N100,000.

With the ban, the commission said, the companies’ operating licenses have also been withdrawn, while their chairman, Henry Omoragbon, was also suspended from engaging in Nigerian capital market activities for a period of five years.

SEC said its decision to cancel the certificate of registration of Partnership Investment Company Plc was pursuant to Section 38 (4) of the Investments and Securities Act 2007 and Rules 34 (1), (a) of the SEC Rules and Regulations, without prejudice to the recovery of all existing liabilities due to the complainants and penalties payable to the commission.

Mr. Ogiemwonyi was found guilty of breaching 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.

On his part, in addition to the ban, Mr. Omoragbon would also pay the penalty of N100,000 for allegedly breaching 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.

The commission said the sanctions were pursuant to Section 304 of the Investments and Securities Act 2007. In addition to providing all information on possible criminality in the matter, it would be referred to the appropriate law enforcement agencies.

Some directors of the company, namely Ojetunde Taiwo, Ogiemwonyi Olufunke, Ogiamien Frank, Adeusi Alexander, and Arese Ugwu, were also suspended from engaging in Nigerian capital market activities for five years.

They were also banned from holding directorship positions in any public company in Nigeria for the said period, in addition to an order for them to pay a penalty of N100,000 each for breaching 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.

Also, a manager in the company, Eseha Enejeta, was suspended for one year from engaging in Nigerian capital market activities and ordered to pay a penalty of N100,000 for also breaching Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees.

Economic and Financial Crimes Commission, EFCC, based on a petition by the NSE, had accused Mr. Ogiewonyi of misappropriation of about N1.24 billion, $80,000.00 and sundry offences, including stealing and dishonest conversion of proceeds of share sale belonging to an investor.

He was charged with the offence and arraigned before a Federal High Court in Lagos.
Some of the allegedly defrauded investors yesterday revealed that over 300 investors of Partnership Investment Company Plc (PIC) were swindled of over N4.8 billion.

Some of the victims in the deal included former Managing Director of Ecobank Transnational Incorporated, ETI, Arnold Ekpe, allegedly swindled of over N1.237 billion worth of shares; Godwin Anono, Chairman, Standard Shareholders Association of Nigeria, N160 million; Olushola Ibrahim, N12.540 million; Solesi Samuel, N40 million worth of shares.

PT

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