The Investments and Securities Tribunal has granted the request of the Securities and Exchange Commission to close down some 30 companies popularly known as ‘wonder banks’ from operating as fund managers across the country without SEC’s authorisation.

A statement issued by Head of Public and International Affairs at the tribunal, Mr. Kenneth Ezea, on Sunday said the companies had also been barred from operating and or withdrawing money from their accounts in all banks in Nigeria.

The SEC had initiated the suit in November 2007, on the grounds that the wonder banks solicited, advertised and invited members of the public to deposit funds with a promise of paying as much as 500 per cent returns within one operational week. The capital market regulator also sought a declaration that the deposit of money with them by the public for a fixed period and bearing interest was illegal and an order of the tribunal stopping them from continuing to do business as fund managers, among other reliefs.
Following the submission of SEC’s counsel, the tribunal in December 2007 issued an interim order freezing the accounts of the companies pending the determination of the case.

The SEC clampdown last year has resulted in billions of naira being trapped in the fund managers’ accounts with banks. Hundreds of depositors have lost money as the operators of the wonder banks closed shop and disappeared. Some depositors in Ibadan reportedly committed suicide.
Delivering final judgment in the matter last week, the tribunal authorised 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.

It 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, Equatorial Trust Bank, First Bank, First Inland Bank, Guarantee Trust Bank, StanbicIBTC Bank, Oceanic Bank, Skye Bank, Spring Bank , Sterling Bank, Union Bank, UBA, Unity Bank, Wema Bank, Zenith Bank and Intercontinental Bank.

Prior to the judgment, the tribunal had upheld the no case submission made by Megawealth Limited, while SEC had withdrawn its cases against two other companies, Divine Success International Limited and Treasureline Interlink Limited. Ezea said the tribunal ordered SEC to withdraw and release to all confirmed investors the said funds found in the possession of the banks.

The affected wonder banks according to him, 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 Limited, Goldpower Unique Services Limited and Gorutrans Nigeria Company Limited.
Others are Interglobal Investment Limited, Money Field Limited, New Freedom Diversified Investment Limited, Open Gate Multipurpose Investors Limited, Orion Express Global Services Limited, Pennywise Investment Limited, Pennywise Royal Heritage Limited, Positive Move International Nigeria Limited, Precious Golden Profile Limited and Real & Cool Wealth International Limited.

Also affected are Shola Olarewaju Ayinke (doing business in the name and style of Sefteg Nigeria. Company), Silvertrust Global Investment Limited, Successpoint Intercontinental Investment Limited, Torid Investment Limited, Treasured Fund and Assets Limited, Vikel Petroleum Limited, Wealth Concept Global Limited, and Wealthgate Multibiz International Limited.

The remaining are involved are Wealth Interlink Agency Limited, Wealth Solution Limited, Wealth Transfer and Logistic Limited, Wilson O. Wilson (doing business in the name and style of Wilamas ventures) and Wisdom Investments Nigeria ltd.

He added that of the 37 wonder banks dragged to the tribunal, the cases against Multimedia Enhance Lynk Limited, Proven Insight Consultants Limited and Kakawa Discount House Limited were dismissed for want of evidence.