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SEC APC Decision: Partnership Inv. CEO Victor Ogiemwonyi Banned for Life; Chairman Gets 5-Yr Ban

Proshare

Tuesday, September 19, 2017 / 12:23PM /Press Release

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in any public company in Nigeria for his unprofessional conduct in respect of the activities of both companies and also withdrawn the operating license of the companies. 

Also, Mr. Henry Omoragbon Chairman of the companies was suspended for a period of 5 years from engaging in capital market activities in the Nigerian Capital Market.

According to a statement by SEC, “That 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. 

“That 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 Securities Limited is hereby cancelled without prejudice to the recovery of all existing liabilities due to the Complainants and penalties payable to the Commission. 

“That the Mr. Victor Ogiemwonyi is hereby banned for life from engaging in capital market activities in the Nigerian Capital Market and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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. 

“While Mr. Henry Omoragbon was suspended for a period of 5 years from engaging in capital market activities in the Nigerian Capital Market and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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. 

Partnership Securities Ltd was by the decision,  ordered to restore to Cletus Mbaji Uchendu 48,200 units of Forte Oil Plc shares which were sold without his authority cum accrued benefits i.e. bonuses and dividends from 23rd May, 1997 to date, stating further 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.  

Some Directors of the company, Mr. Ojetunde Taiwo  , Mrs. Ogiemwonyi Olufunke, Mr. Ogiamien Frank, Mr. Adeusi Aladejola Alexander,  Mrs Arese Ugwu, were suspended for a period of 5 (Five) years from engaging in capital market activities in the Nigerian Capital Market and banned from holding directorship positions in any public company in Nigeria for the said period and hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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. 

While Mr. Eseha Augustine Enejeta a Manager in the company was suspended for a period of One (1) year from engaging in capital market activities in the Nigerian Capital Market and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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.  



Comprehensive/ Approved Decision 

In the Matter of the Investments and Securities Act, 2007,  

Before The Administrative Proceedings Committee of the Securities and Exchange Commission

In Re:

· Violation of SEC Rules on separation of clients’ funds from company’s funds

· Unauthorized sale of clients’ shares

· Failure/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/misleading information

· Non-compliance with the Commission’s Rules relating to assets-mix ratio

· 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

· 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.

Between 

Head, Enforcement Department                                                  Complainant

(Securities & Exchange Commission) And 

Partnership Investment Company Plc                                         1st Respondent

Partnership Securities Limited                                                      2nd Respondent

Mr. Henry Omoragbon                                                                   3rd Respondent

Mr. Victor Ogiemwonyi                                                                  4th Respondent

Mr. Allan Omorogba                                                                       5th Respondent

Mr. Ojetunde Taiwo                                                                          6th Respondent

Mrs. Ogiemwonyi Olufunke                                                           7th Respondent

Mr. Ogiamien Frank                                                                       8th Respondent

Mr. Adeusi Aladejola Alexander                                                    9th Respondent

Mr. Eseha Augustine Enejeta                                                         10th Respondent 

Mr. Odihi-Ogiemien Frank                                                            11th Respondent  

Dr. Bello Aliyu Gusau                                                                     12th Respondent

Mr. Olafisika Akinkugbe                                                                13th Respondent

Mrs Arese Ugwu                                                                               14th Respondent

Mrs. Yinka Omoragbe                                                                     15th Respondent

Mr. Justus Olu Paul                                                                        16th Respondent

Mr. Clem Baiye                                                                                17th Respondent

Mr. S.C. Irune                                                                                   18th Respondent 

Decision of the Committee
Pursuant to the powers conferred on the Commission by the Investments and Securities Act, (ISA) 2007, the SEC Rules and Regulations made pursuant thereto, and for the maintenance of integrity in the Capital Market, the Administrative Proceedings Committee of the Commission hereby decides and directs as follows; 

1.                   That by their actions and/or omissions the 1st, 2nd, 3rd, 4th, 6th, 7th, 8th, 9th, 10th, 11th, and 14th Respondents engaged in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market. 

2.                  That 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 the 1st Respondent is hereby cancelled without prejudice to the recovery of all existing liabilities due to the Complainants and penalties payable to the Commission. 

3.                  That 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 the 2nd Respondent is hereby cancelled without prejudice to the recovery of all existing liabilities due to the Complainants and penalties payable to the Commission. 

4.                  That the 2nd Respondent is hereby ordered to pay the sum of N1, 000,000 (One Million Naira) only as penalty for the breach of Rule 65 (5) of the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007 

5.                  That the 1st Respondent is hereby ordered to pay the sum of N3, 000,000 (Three Million Naira) only as penalty for the breach of Section 61 (1) of the Investments and Securities Act 2007 and punishable under Section 65 (1) of the Investments and Securities Act 2007. 

6.                  That the 3rd, 4th, 7th & 14th Respondent are hereby jointly and severally ordered to pay the sum of N3, 000,000 (Three Million Naira) only as penalty for the breach of Section 61 (1) of the Investments and Securities Act 2007 and punishable under Section 66 (1) of the Investments and Securities Act 2007. 

7.                  That the 2nd Respondent is hereby ordered to pay the sum of N100, 000 (One Hundred Thousand Naira) only as penalty for the breach of Section 40(2) of the Investments and Securities Act 2007. 

8.                 That the 2nd Respondent is hereby ordered to pay the sum of N5, 000,000 (Five Million Naira) only as penalty for the breach of Rule 56 (1) (c) of the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007 and punishable under Rule 7. 

9.                  That the 3rd Respondent is hereby suspended for a period of 5 years from engaging in capital market activities in the Nigerian Capital Market and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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. 

10.              That the 4th Respondent is hereby banned for life from engaging in capital market activities in the Nigerian Capital Market and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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. 

11.               That the 4th Respondent is hereby banned for life from holding directorship position in any public company in Nigeria for his unprofessional conduct in respect of the activities of the 1st and 2nd Respondents. 

12.              That the 6th Respondent is hereby suspended for a period of 5 (Five) years from engaging in capital market activities in the Nigerian Capital Market and banned from holding directorship positions in any public company in Nigeria for the said period and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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

13.              That the 7th Respondent is hereby suspended for a period of five (5) years from engaging in capital market activities in the Nigerian Capital Market and banned from holding directorship positions in any public company in Nigeria for the said period and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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.   

14.              That the 8th Respondent is hereby suspended for a period of five (5) years from engaging in capital market activities in the Nigerian Capital Market and banned from holding directorship positions in any public company in Nigeria for the said period and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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. 

15.               That the 9th Respondent is hereby suspended for a period of five (5) years from engaging in capital market activities in the Nigerian Capital Market and banned from holding directorship positions in any public company in Nigeria for the said period and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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. 

16.              That the 10th Respondent is hereby suspended for a period of One (1) year from engaging in capital market activities in the Nigerian Capital Market and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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.  

17.               That the 14th Respondent is hereby suspended for a period of five (5) years from engaging in capital market activities in the Nigerian Capital Market and banned from holding directorship positions in any public company in Nigeria for the said period and is hereby ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) 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. 

18.              That the 2nd Respondent is hereby ordered to restore to Cletus Mbaji Uchendu 48,200 units of Forte Oil Plc shares which were sold without his authority cum accrued benefits i.e. bonuses and dividends from 23rd May, 1997 to date. 

19.              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.  




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