The Federal High Court in Nasarawa, Nigeria, has convicted 21 companies for operating financial investment schemes without the necessary regulatory licensing from the Securities and Exchange Commission (SEC). The court found the corporate entities guilty of violating Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA) of 2020. The companies were prosecuted by the Economic and Financial Crimes Commission (EFCC) for actively advertising and managing financial investments without valid authorization.
The presiding judge, Justice Anyalewa Onoja-Alapa, delivered the judgment after the EFCC presented a watertight case against the firms. The prosecution tendered compelling witness testimonies, statements from investigating officers, and detailed reports on investigative activities. The EFCC counsel also submitted official correspondences from the Corporate Affairs Commission and the SEC, providing irrefutable documentary evidence of the companies' illegal operations.
The convicted entities include Ngwuoke Daniels Technologies, Credio Banco Ltd, Digital Company Ltd, Co Request Capital Nigeria Ltd, and Mega Drop Quality Stores Ltd, among others. A total of 21 companies were found guilty by the court. The companies had operated with blatant disregard for the law, successfully evading interrogation for a period spanning more than five years.
The EFCC noted that the promoters of these companies repeatedly ignored formal invitations to appear for questioning on multiple occasions between December 2022 and January 2023. This ultimately forced the commission to prosecute them in absentia. The legal proceedings were spearheaded by the EFCC, with the prosecuting counsel, Nasir Umar, formally requesting the court to enter a "not guilty" plea on behalf of the absentee defendants.
Delivering the final judgment, Justice Onoja-Alapa came down hard on the fraudulent enterprises. The court convicted and sentenced each of the 21 companies to a sweeping base fine of ₦30 million. In a further blow to the illegal operators, the judge ordered the convicted firms to pay an additional penalty of ₦200,000 for every single day they actively committed the offense.
The EFCC's efforts to crack down on illegal financial operations are ongoing. The commission has been working to bring perpetrators to justice and prevent similar schemes from occurring in the future. The conviction of the 21 companies sends a strong message to those operating illegally in the financial sector.
The SEC and other regulatory agencies have been working to strengthen oversight and prevent such schemes from occurring. The conviction of the 21 companies is a significant step in this direction. Key players in the financial sector have been urged to operate within the bounds of the law and obtain the necessary licenses to avoid similar sanctions.
Key points
- 21 companies convicted for operating financial investment schemes without regulatory licensing from SEC
- Companies sentenced to ₦30 million fine and additional ₦200,000 penalty for every day of offense
- EFCC and SEC working to strengthen oversight and prevent similar schemes from occurring
