Emma Ujah
14 July 2008
The Investments and Securities Tribunal (IST) sitting in Abuja has upheld the request of the Securities and Exchange Commission (SEC) to close down and stop some 30 companies popularly known as 'wonder banks' from operating as fund managers across the country without the SEC's authorisation.
The Tribunal, according to a statement by its spokesman, Mr Kenneth Ezea, in Abuja, yesterday, also barred the companies from operating and/or withdrawing money from their accounts in all banks and companies in Nigeria .
The SEC had commenced the suit in November 2007 with complaints that the 'wonder banks' solicited, advertised and invited members of the public to deposit funds with a promise of paying as much as 500% returns within one operational week.
It sought a declaration that the deposit of money with them by the public for a fixed period and bearing interest is illegal and an order of the Tribunal stopping them from continuing to do business as fund managers, among other reliefs.
Following the submissions of SEC's Counsel, the Tribunal had earlier in December 2007 issued an interim order freezing the accounts of the companies pending the determination of the case.
Delivering final judgment in the matter last week, the Tribunal authorised the SEC to take custody of the investors' funds found to be in possession of the 30 companies and their banks for the benefit of the investors.
The Tribunal also authorised the Central Bank of Nigeria to determine the status of all the investors' funds kept in the custody of the respondent 17 banks namely - Access Bank Plc, Diamond Bank Plc, Equatorial Trust Bank Plc, First Bank Plc, First Inland Bank Plc, Guarantee Trust Bank Plc, IBTC Chartered Bank Plc, Kakawa Discount House Ltd, Oceanic Bank Plc, Skye Bank Plc, Spring Bank Plc, Sterling Bank Plc, Union Bank Plc, United Bank for Africa, Unity Bank Plc, Wema Bank Plc, Zenith Bank Plc and Intercontinental Bank Plc.
The Tribunal ordered the SEC to withdraw and release to all confirmed investors the said funds found in the possession of the banks.
The affected 'wonder banks' include: All Green Investments Nigeria Limited, Andrew O. Irikefe (doing business in the name and style of Art Masters & Co.), Ndego Onyemaechi Fidelis (doing business in the name and style of Casheed Venture), Cyber International Limited, Fortune Access Interlinks Network Ltd, Goldpower Unique Services Ltd and Gorutrans Nig. Company Ltd.
Others are Interglobal Investment Ltd, Money Field Ltd, New Freedom Diversified Investment Ltd, Open Gate Multipurpose Investors Ltd, Orion Express Global Services Ltd, Pennywise Investment Ltd, Pennywise Royal Heritage Ltd, Positive Move International Nig. Ltd, Precious Golden Profile Ltd, Real & Cool Wealth International Ltd, Shola Olarewaju Ayinke (doing business in the name and style of Sefteg Nig.Co.), Silvertrust Global Investment Ltd, Successpoint Intercontinental Inv. Ltd, Torid Investment Ltd, Treasured Fund and Assets Ltd, Vikel Petroleum Ltd, Wealth Concept Global Ltd, and Wealthgate Multibiz International Ltd.
Also involved are Wealth Interlink Agency Ltd, Wealth Solution Ltd, Wealth Transfer and Logistic Ltd, Wilson O. Wilson (doing business in the name and style of Wilamas ventures) and Wisdom Investments Nigeria ltd.
Interestingly of the 37 wonder banks dragged to the Tribunal, the cases against Multimedia Enhance Lynk Ltd, Proven Insight Consultants Ltd and Kakawa Discount House Ltd were dismissed for want of evidence. The earlier interim order freezing their bank accounts were also vacated forthwith.
Prior to the judgment, the Tribunal had upheld the no case submission made by Megawealth Limited while the SEC had withdrawn its cases against two other companies - Divine Success international Limited and Treasureline Interlink Limited. Their cases were struck out.
The Tribunal however could not decide the cases of Wealth Zone limited and Nospetco Oil and Gas Ltd as it stayed proceedings in the cases pending the outcome of appeals they lodged against an interlocutory ruling on its jurisdiction at the Court of Appeal.
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