BusinessDay... the voice of business: Investment tribunal seals 37 ‘wonder banks’, freezes accounts

Investment tribunal seals 37 ‘wonder banks’, freezes accounts
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Chinedu Dike on 04 January, 2008 02:00:00
 
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.