A capital market operator, Midland Capital Market Limited, has been dragged to court over an alleged N40m fraud case.
The Securities and Exchange Commission said in a statement on Sunday that the Federal High Court in Abuja ruled that Midland and its Managing Director, Mr Sam Bandi, had a case to answer on allegations of falsely obtaining N40m from a client.
SEC described the action as a boost to its drive to ensure investor protection in the capital market.
According to the statement, Midland Capital and Bandi are being accused of obtaining the said sum from one Mr Patrick Aibhalemen under false pretence that they are fund managers and going to invest the money on his behalf under a ‘Guaranteed Investment Product’.
It said they, however, did not invest the money, thereby committing an offence contrary to Section 8 of the Advanced Fee Fraud and Fraud Related Offences Act, 2006 and punishable under Section 1(3) of the same Act.
The statement read in part, “They were then arraigned on a two-count charge before Hon. Justice A.R Mohammed of the Federal High Court, Abuja.
“Prosecution called three witnesses and tendered seven exhibits. After the close of the case by the prosecution, the company and Bandi raised a ‘No Case’ submission and the court ruled in favour of the prosecution and ordered that both the company and Bandi should enter their defence because they have a case to answer.”
SEC added that the case was subsequently adjourned to February 19, 2019 for hearing.
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