Victor Ogiemwonyi, banned for life CEO of Partnership Investment Company Plc
September 19, 2017
By InvestAdvocate
Lagos (INVESTADVOCATE)-The Securities and Exchange Commission (SEC) on Tuesday announced the ban of rogue chief executive officer (CEO) of Partnership Investment Company Plc and Partnership Securities Limited , 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in any public company in Nigeria for his unprofessional conduct in respect of the activities of both companies and also withdrawn the operating license of the companies.
SEC also suspended for a period of five years Henry Omoragbon chairman of the companies from engaging in capital market activities in the Nigerian Capital Market (NCM)
“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, SEC said in a statement, according to a report by Proshare.
Apart from the life ban on Ogiemwonyi from engaging in capital market activities in the NCM, he was also 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.
Omoragbon was 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.
According to the Commission Partnership Securities 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.
In the same vein, some of the directors of the company were suspended for a period of Five years from engaging in capital market activities in the NCM 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 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.
These directors are Ojetunde Taiwo , Ogiemwonyi Olufunke, the wife of Ogiemwonyi , Ogiamien Frank, Adeusi Aladejola Alexander and Arese Ugwu.
While Mr. Eseha Augustine Enejeta a Manager in the company was suspended for a period of One year from engaging in capital market activities in the NCM 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.
This is coming on the heels of an alleged N10 billion scandal, based on official estimates, relating to diversion and misappropriation of funds by Ogiemwonyi and his affiliate companies, Partnership Securities Limited (PSL), and Partnership Investment Company Plc
Below is the 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.
