NSE RoundUp! SEC indicts stockbroking firm over N253.7m fraud

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has indicted a stockbroking firm, WT Securities Limited, for allegedly engaging in shares fraud and mismanagement of client’s portfolio.

The indictment comes barely few days after SEC in a high-profile case indicted and banned two BGL companies from the capital market.

In a notice issued by the management of SEC, the apex regulator stated that preliminary investigation indicated that WT Securities Limited engaged in fraudulent sale and mismanagement of clients’ shares, valued at about N253.7
million.

WT Securities Limited was alleged to have mismanaged the investment portfolio of Chief Opral Mason Benson valued at N185.20 million and also sold 500,000 shares of Nigerian Breweries belonging to one Ngozi Oyekwere Nwachuku without the authorisation of the client. The Nigerian Breweries’ shares are currently valued at about N68.5 million.

“A preliminary investigation carried out by the Commission revealed that WT Securities Ltd sold the complainants shares without authority and management of the Commission has directed that the firm, its directors and sponsored individuals be invited to a meeting to explain their roles in the transaction,” SEC stated.

However, in line with capital market adjudicatory rules, SEC has invited directors and officials of WT Securities Ltd to appear before it on Tuesday, June 7, to “show cause why they should not be sanctioned for violating the provisions of Rules 43 and 182A (1), (3) and (5) of the SEC Rules and Regulations”.

SEC had recently cancelled the registration of BGL Securities Limited and BGL Asset Management Limited after the Administrative Proceedings Committee (APC) found the firms and their operators guilty in a N2.2 billion asset management case.

SEC also banned key executives and management staff of BGL from the capital market for various numbers of years.

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