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Thursday, May 26, 2022

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Abuja Court sentences promoters of illegal capital market firm

By Samuel Bankole

 

The Securities and Exchange Commission (SEC) on Thursday said that an Abuja Federal  High Court has convicted Bara Finance & Investment and its promoters for engaging in illegal capital market activities.

In a statement posted on its website, the commission said the court also found the company and its promoters guilty of “operating an unregistered investment scheme, contrary to the provisions of sections 38, 54 and 67 of the Investments and Securities Act 2007.”

According to the capital market regulator, the court sentenced Ede Agida and Olom Ojebong Jacob both promoters of the illegal scheme to one year imprisonment at the Nigerian Correctional Centre, without the option of a fine.

The commission, however, said that the court did not made any pronouncement on its request for the defendants to refund all outstanding monies due to their “investors.”

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“The Commission hereby reiterates that BARA FINANCE & INVESTMENT LTD and its promoters are NOT registered to operate in the Nigerian capital market.

“Accordingly, the public is strongly advised to desist from engaging in any capital market related business/investment activities with the company or otherwise dealing with the above-mentioned individuals convicted by the Federal High Court,” SEC stated.

There are many unregistered collective investment scheme operators in the country and the commission has not been able to tackle many of them, with a number of Nigerians fallen victims to the fraudulent activities of such companies.

 

 

 

 

 

 

 

 

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