•How EFCC arrested Okumagba
Part of investors’ money mobilised by BGL Group through Private Placement (not listed) has been allegedly traced to investments on the British Virgin Islands.
Albert Okumagba, the Group Managing Director of BGL Group, one of Nigeria’s popular investment banking firm and a renowned capital market deal maker, was recently arrested by the Economic and Financial Crimes Commission (EFCC).
EFCC operatives allegedly relied on CCTV to fish Okumagba out from his hotel after he allegedly worked hard to beat arrest.
He was arrested for alleged N28.9 billion fraud in the capital market.
The Securities and Exchange Commission (SEC) said the preliminary report of forensic auditors on BGL Group showed that the company eroded its shareholders’ funds to the tune of N48 billion.
The SEC also said the company progressively eroded its shareholders’ funds through losses sustained over a five-year period totaling about N48 billion as of December 31, 2014.
Earlier this year, the SEC had disclosed that it received over 40 letters of investors’ complaints against BGL Group alleging indebtedness of about N5.8 billion.
“Investors’ funds were put at extreme risk through questionable investments by the BGL management in some illiquid and unlisted companies’ securities, one of which had been declared bankrupt,” the SEC said.
“The group had significant liquidity challenges which made it unable to meet its responsibilities towards clients and investors as evidenced by over N11 billion in unpaid matured funds to investors.”
Okumagba had earlier in the year stepped aside at the President of Chartered Institute of Stockbrokers (CIS).
In a recent public notice, the SEC informed the general public that on September 17, 2015, the Federal High Court discharged the ex-parte order obtained by BGL and its subsidiaries on May 27, 2015.
The notice said: “In view of the court’s ruling, BGL, its subsidiaries and sponsored individuals remain suspended from operating in the Nigerian capital market.
“The Nigerian Stock Exchange (NSE), Central Securities Clearing System CSCS, Financial Market Dealers Quotation (FMDQ), Nigeria Association of Securities Dealers (NASD) and the general public should further note that the directives of the Commission in its public notice dated May 21, 2015 still subsists.”
