Investment tribunal seals 37 ‘wonder banks’, freezes accounts
Musa Alfaki, DG Security and Exchange Commission (SEC)
The Investment and Securities Tribunal (IST) has ordered that 37 wonder banks operating illegally as investment or fund managers be sealed
The bank accounts of the companies held in 18 financial institutions (17 banks and one discount house) are also to be frozen.IST, in its ruling at its first sitting in Lagos mid-December, gave the order following an application filed by the Securities and Exchange Commission (SEC).
The seal-up order remains pending the determination of the motion on notice filed in the suit.
According to the court order, SEC is to seal the offices, while the Central Bank of Nigeria (CBN) is to freeze the bank accounts of the companies.
SEC, the applicant in the case, had among other things prayed the court to authorise it to close the shops of the illegal market operators on the grounds that their activities were unlawful as they did not obtain the necessary licences and authorisation to operate either as fund or investment managers in the capital market.
In a motion ex-parte brought by SEC, pursuant to section 234(1) and 237 (2) of the Investment and Securities Act No. 45 of 1999 and order 30 (30) (m) and 34 (1) of the IST (procedure) rules 2003 and under the inherent jurisdiction of the tribunal, the IST stated: "Take notice that this Honourable Tribunal shall be moved on Tuesday, the 4th day of December 2007 at the hour of 9 o’clock in the fore noon or so soon thereafter as counsel may be heard on behalf of the applicant praying this Honourable Tribunal for the following orders:. An order authorising the applicant and the 38th respondent to seal up all business premises wherein the 1st and 37th respondents do business as fund managers pending the determination of the motion on notice filed in this suit."IST also at the same sitting ordered Greenwich Trust Ltd, a stockbroking firm, to return the sum N40-million to Anthony Obidulu being share purchase fund he deposited with the company.
IST in its first sitting in Lagos since inception in 2002 also directed the firm to pay Obidulu 7 percent interest on the principal sum from June 2006 to April 21 2007. Another 7 percent is awarded on the amount until the money is fully paid to Obidulu .
The operations of IST going by this judgement and others are said to be very positive developments that drive the capital market as it has the potential of strengthening investor confidence.
The tribunal, it would be recalled had ordered the refund of N61-million to Tony Ezenna, chairman and chief executive officer, Orange Drugs Limited, who was defrauded of N61-million by TKSL. But following the intervention of the Economic and Financial Crimes Commission (EFCC) and other recovery efforts and in line with a court ruling ordering that the investor be restituted, SEC recently made a full and final repayment of the lost money.
The 37 illegal fund managers are: Allgreen Investment Nigeria Ltd; Andrew O. Irikefe (doing business in the name and style of Artmasters and Co.); Ndego Onyemaechi Fidelis (doing business in the name and style of Cashseed Ventures); Cyberwealth International Ltd; Divine Success International Ltd; Fortune Access Interlinks Network Ltd; Goldpower Unique Services Ltd; Gorwtrans Nig. Company Ltd; Interglobal Investment Ltd; Megawealth Ltd; Money Field Ltd, and Multimedia Enhance Lynk Ltd.
Others include New Freedom Diversified Investment Ltd; Nospetco Oil & Gas Ltd; Opengate Multipurpose Investors Ltd; Orion Express Global Services Ltd; Pennywise Investment Ltd; Pennywise Royal Heritage Ltd; Positive move International Nig. Ltd; Precious Golden Profile Ltd; Proven Insight Consultants Ltd; Real and Cool Wealth Int’l Ltd; Shola Olarewaju Ayinke (doing business in the name and style of Sefteg Nigeria Co.); Silver Trust Global Investment Ltd; Successpoint Intercontinental Investment Ltd; Torrid Investment Ltd; Treasureline Interlink Ltd.
The remaining ones are Treasured Fund and Assets Ltd; Vikel Petroleum Ltd; Wealth Concept Global Ltd; Wealthgate Multibiz International Ltd; Wealth Interlink Agency Ltd; Wealth Solutions Ltd; Wealth Transfer & Logistics Ltd; Wealth Zone Ltd; Wilson O. Wilson (doing business in the name and style of Wilamas Ventures), and Wisdom Investment Nig. Ltd.
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Comments (3 posted):
SECs overall concern should be making sure that public fund is returned to investors in the wonder banks and not making cheap money avialble to banks.
1. The safety of our investments
2. The return of our investments
It is also important for me to note here that the only organization(s) that ought to face the tribunal or EFCC or the Presidency for disciplinary action is SEC and CBN - the reason is simple - what was CBN and SEC doing for these years while these 'wonder banks' were operating. They should be charge for negligence of duty and allowing Nigerians to be 'defrauded' while they are pretending as if nothing is happening. I can not understanding why this sudden clamp down on these businesses. On whose interest are they doing this? Where were they all these years, while these businesses were operating?
All concerned investors should send mail to investors37forum@gmail.com with details of their investments. Recommendations and suggestions would be highly appreciated. Useful information would also be appreciated.
We shall shortly be sending our collective petition to the Presidency and National Assembly for proper consideration. WE NEED OUR MONEY BACK NOW!
37WonderBanks Investors Forum
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