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SUMMARY OF THE APC/1/2016: AFOLABI GABRIEL OLUWASEYI & 9 OTHERS Vs. BGL SECURITIES LIMITED & 22 OTHERS

The Commission received several complaints against the 1^st and 2^nd Respondent over failure, refusal and/or neglect to liquidate their investments in both the Guaranteed Consolidated Notes (GCN) and Guaranteed Premium Notes (GPN). Upon investigation of the complains it was discovered that the indebtedness of the 1^st & 2^nd respondent to the complainants stood at ₦2, 184, 474, 991.65 (Two Billion, One Hundred and Eighty Four Million, Four Hundred and Seventy Four Thousand, Nine Hundred and Ninety One Naira, Sixty Five Kobo). It was also revealed that act was carried out through the 3^rd to 23^rd respondents.

In a bid to obtain justice for the complainants and grant all parties fair hearing, the matter was presented before the Administrative proceedings Committee (APC) of the Securities and Exchange Commission (SEC). Upon confirmation that all parties to the matter had been served hearing notices, the SEC APC sat and heard the matter on February 6, 2016. During the proceedings testimonies and documentary evidence were tendered by various parties.

Upon conclusion of the proceedings, the SEC APC arrived at a decision which has been approved by the relevant authority. The decisions of the Committee are as follows:

1. That by their actions and/or omissions the 1^st, 2^nd, 3^rd, 4^th, 5^th, 6^th, 7^th, 8^th, 9^th, 10^th, 11^th, 12^th, 13^th, 14^th, 15^th, 16^th, 17^th, 18^th, 19^th, 21^st and 22^nd Respondents engaged in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market.
2. That all the allegations against the 20^th, 22^nd and 23^rd Respondents were not substantiated hence they are hereby discharged.
3. That the 1^st Respondent restitute the 1^st, 4^th & 7^th complainant, while the 2^nd respondent restitutes the 3^rd, 5^th, 6^th, 8^th, 9^th & 10^th
4. That the 1^st Respondent refund to the 2^nd Complainant the sum of N855, 539, 809.55 (Eight Hundred and Fifty Five Million, Five Hundred and Thirty Nine Thousand Eight Hundred and Nine Naira Fifty Five Kobo).
5. That pursuant to Section 304 of the Investments and Securities Act 2007 all information on possible criminality in this matter be and is hereby referred to the appropriate law enforcement agencies and the Enforcement Department of the Commission shall follow up and ensure that the matter is brought to a logical conclusion.
6. The Committee further passed the following sanction on the under listed respondents as follows:

DOWNLOAD>> THE DECISION IN THE MATTER OF THE INVESTMENT AND SECURITIES ACT 2007: BEFORE THE SECURITIES AND EXCHANGE COMMISSION ADMINISTRATIVE PROCEEDINGS COMMITTEE (SEC APC) HELD 3^RD FEBRUARY, 2016