THE Federal Government has dragged Dantata Success and Profitable Company and their promoters before the Federal High Court in Abuja for investment fraud amounting to over N2bn.
The Securities and Exchange Commission confirmed the development in a statement issued on Wednesday.
Those charged along with the company are Basira Ibrahim Dantata, Lawan Sanni and Gaji Ibrahim Dantata.
The defendants who were arraigned before Justice A.I. Chikere of the Federal High Court 3, were alleged to have, between 2018 and 2019, within the jurisdiction of the court, defrauded about 7,250 investing public by asking then to subscribe and invest in an unregistered investment scheme amounting to over N2bn.
According to the charge, they committed an offence contrary to Section 54 of the Investments and Securities Act 2007 and punishable under same section.
When the matter came up in court, one of the defendants, Gaji Ibrahim Dantata, was not available due to health reasons, The Point learnt.
Justice Chikere thereby adjourned the matter to November 5, 2020 for plea and motion filed by the defendants.
Recall that the Securities and Exchange Commission, pursuant to its powers under Section 13 (w) of the Investments and Securities Act, 2007, on February 6, 2019, sealed up the business premises of Dantata Success & Profitable Company.
The company, according to the Securities and Exchange Commission, had been engaging in illegal activities in the Nigerian capital market.
In addition, the Commission obtained court orders to freeze the bank accounts of the company to preserve the funds of investors in line with Section 13 (x) of the ISA 2007.
The company was not registered or authorised by the Commission to engage in any activity in the capital markets.
However, it targeted and reached Nigerian investors through radio programs in the Kano area of Nigeria and collected large sums of money from investors under the guise of a “structured investment”.
The activities of the company contravene the provisions of Section 38(1) and 67(1) of the Investments and Securities Act which, respectively, prohibit unregistered and unauthorised entities/persons from operating any investment business or making any invitation to the public to acquire or dispose of any securities of a body corporate or to deposit money with anybody corporate for a fixed period or payable at call.
The Commission also issued a warning to the public that Dantata Success & Profitable Company and any individuals representing them are not registered and therefore not entitled to provide investment advisory or services in Nigeria.
