By Omodele Adigun
For engaging in acts capable of eroding public confidence in the capital market, the Securities and Exchange Commission (SEC) has banned Mr. George Nchedo Okafor, the former Managing Director of Ideal Securities & Investment Limited, from capital market activities in the country.
This was the outcome of SEC Administrative Proceedings Committee (APC) which found him guilty of various offences, including illegally obtaining bank loans of N500 million with forged Board resolution; conversion of his company’s funds for personal business; refusal to carry out client’s instructions; supply and paying fictitious clients as creditors of the company, among others.
In the Summary of the APC Decision, in the matter of APC/2/2016: ideal Securities & Investment Limited Vs Mr George Nchedo Okafor, made available to Daily sun, SEC stated that on September 12, 2008, the Commission received a petition from the complainant- Ideal Securities & Investment Limited – alleging various misconducts against the Respondent- Mr. George Nchedo Okafor.
“Pursuant to this complaint, the Commission conducted investigations and observed that the respondent had carried out actions which were in breach of the provisions of the Investment and Securities Act 2007, as well as the SEC Rules and Regulations.
“To afford all parties fair hearing, the Commission on December 7, 2016 convened an Administrative Proceedings Committee (APC) sitting to hear the matter. During the hearing, testimonies and documentary evidence were tendered by the parties.
Upon conclusion of the hearing, the SEC APC reached a final decision which has been approved by relevant authority. The decisions of the Committee are as follows:
“That the Respondent engaged in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market.
“That the Complainant should take appropriate steps to recover whatever monies it lost as a result of the Respondent’s conduct.
“That the Respondent is hereby banned from being employed anywhere in the Nigerian Capital Market and from holding the position of a Director in any corporate entity operating in the Nigerian capital market.
“That pursuant to Section 304 of the Investments and Securities Act 2007, all information on the issues of forgery of board resolution and issuance of dud cheques be and is hereby referred to the appropriate law enforcement agencies.”
Shedding more light on Okafor’s offence, SEC stated that: “the Respondents obtained a margin facility N500 million from Guaranty Trust Bank Plc on behalf of the complainant without approval of the Board “the alleged Board Resolution dated March 28, 2008, authorising the margin facility was signed by the Respondent and another unnamed person.
ìThe Respondent used the companyís portfolio of blue chip companies as security/collateral in obtaining the unauthorized margin facility.î