SHARE FRAUD: SEC slams life ban on Ogiemwonyi, Partnership Securities’ boss

The Securities and Exchange Commission (SEC) has banned the managing director of Partnership Investment Company Plc and Partnership Securities Limited Mr. Victor Ogiemwonyi for life from holding directorship position in any public company in Nigeria.

Also, Mr. Henry Omoragbon, chairman of the companies was suspended for a period of five years from engaging in capital market activities in the Nigerian Capital Market.

SEC confirmed this in a statement on Tuesday. According to the statement, “pursuant to Section 38 (4) of the Investments and Securities Act 2007 and Rules 34 (1), (a) of the SEC Rules and Regulations made pursuant thereto, the certificate of registration of Partnership Investment Company Plc is hereby cancelled without prejudice to the recovery of all existing liabilities due to the Complainants and penalties payable to the Commission.

“Mr. Victor Ogiemwonyi is hereby banned for life from engaging in capital market activities in the Nigerian Capital Market and ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments an Securities Act 2007. He is also banned for life from holding directorship position in any public company in Nigeria for his unprofessional conduct in respect of the activities of the both companies.

“Mr. Henry Omoragbon is hereby suspended for a period of five years from engaging in capital market activities in the Nigerian Capital Market and ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments an Securities Act 2007.”

The Decision also stated that pursuant to Section 304 of the Investments and Securities Act 2007 all information on possible criminality in the matter would be referred to the appropriate law enforcement agencies.

Some Directors of the company, Mr. Ojetunde Taiwo, Mrs. Ogiemwonyi Olufunke, Mr. Ogiamien Frank, Mr. Adeusi Aladejola Alexander, Mrs Arese Ugwu, were also suspended for a period of five years from engaging in capital market activities in the Nigerian Capital Market, banned from holding directorship positions in any public company in Nigeria for the said period and ordered to pay a penalty of N100, 000.

Ogiemwonyi and others were accused of unauthorized sale of clients’ shares, failure and refusal to resolve clients’ complaints, performance of a capital market function without registration, non-compliance with the Code of Corporate Governance of the Commission, filing of false and misleading information and non-compliance with the Commission’s rules relating to assets-mix ratio.

They were also accused of non-compliance with the Commission’s rules on disclosure of transactions valued at N50 million and above executed in a single day, soliciting deposits from the public and other violations of the Investments and Securities Act, 2007, SEC Rules and Regulations, the Code of Conduct for Capital Market Operators and their Employees and Code of Corporate Governance for Public Companies.

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Mr. Ogiemwonyi has been Chief Executive Officer of Partnership Investment Company Plc since 1992, and served as a National Council Member of the Nigerian Stock Exchange.

SE, in collaboration with the Economic And Financial Crimes Commission (EFCC), had arraigned Ogiemwonyi earlier in the year before a Federal High Court sitting in Lagos, which ordered that he be remanded in Ikoyi prison.

His firm, Partnership Securities Limited, a stockbroking firm on the Nigerian Stock Exchange was accused of allegedly fraudulently selling shares belonging to his clients and misappropriating the proceeds.

Prominent victims of the alleged scheme include Mr Godwin Anono Chairman Standard Shareholders Association of Nigeria and Mr Arnold Ekpe former Managing Director of Ecobank Transnational Incorporated (ETI).

 

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