August 04, 2008 1916 VIEWS
Proshare

-Aftermath of clampdown on Wonder Bank

 

Cashseed Ventures had demanded the sum of N20 million from the Securities & Exchange Commission (SEC); following the aftermath of clampdown on Wonder Banks. This was contained in a petition made available to Proshare NI today in Lagos Nigeria.

 

The firm that is involved in the business of Laundry, Dry Cleaning and Industrial Cleaning business amongst others, was among the companies that SEC had publicly alleged of operating a Wonder Bank.

 

However, the petition affirmed that the allegation by SEC was given extensive coverage in many print and other media organisations.

 

“In fact, it is on record that on or about the 14th July, 2008 upward, the News of SEC having obtained an order of “The Investment and Securities Tribunal” against some wonder banks and their operators of which you listed our clients as the operator of a wonder bank and a wonder bank respectively, was given prominence by the media” the petition reads.

 

Which also include the Internet Platforms, the story it was affirmed was reported by The Punch, Guardian, Thisday, Vanguard, Businessday amongst others, “while it was widely circulated by Proshare Nigeria on its Internet Site” the letter said.

 

In his petition, dated July 25, 2008 to Musa Al-Faki, Director General (DG) of SEC. Bisi Iyaniwura & Co, Worldview Chambers Attorney to the accused affirmed that the allegation had greatly affected the business fortunes of their client Cashseed Ventures and one Ndego Onyemaechi Fidelis.

 

“We were further informed by our Clients that since the break of the News they had been physically attacked by some people who had been victims of various Wonder Banks on account that they are part of the large Wonder banking family that had brought agony to a lot of people” the petition affirmed.

 

Apart from these, Bisi Iyaniwura & Co further affirmed that their client’s business fortune had been affected as a number of their customers have refused to do business with them on account of the allegation.

 

Other demands from SEC by Cashseed Ventures include a public retraction of the allegation that the company is involved in the business of operating a wonder bank.

 

And a Public apology in writing and same to be published in six National Newspapers and selected medium of their choice.

 

To prove their non-involvement in the Wonder Bank business, a document marked “Annexure C” was made available to Proshare NI stating Cashseed Ventures account with First Bank of Nigeria Plc (FBN) Bariga Branch in Lagos State.

 

The said account the document shows was opened May 14, 2008.  And as at the time of SEC’s allegations, the company is yet to collect the Cheque book in respect of the account while the account balance shows N11, 947.50K.

 

To further prove its innocence, another document marked “Annexure A1” from the Corporate Affairs Commission (CAC), which is the Certificate of Registration of Business Name was made available to Proshare NI showing that Cashseed Ventures was into the Laundry, Dry Cleaning and Industrial Cleaning business amongst others.

 

Though as at the time of filling in this report, Proshare NI could not get the Commission’s side of the story as regard the Cashseed Ventures petition against it.

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