- Midland Capital Market Limited and its Managing Director, Sam Kwandi, are accused of operating as fund managers without registration by the Securities and Exchange Commission (SEC).
- They are also accused of obtaining N40 million from a client under false pretenses of investing the money in a guaranteed investment product.
- The trial is ongoing, and the last defense witness is scheduled for cross-examination on July 13, 2023.
Justice A.R. Mohammed of the Federal High Court in Abuja has scheduled July 13, 2023, for the cross-examination of the final defence witness in the fraud case against Midland Capital Market Limited and its Managing Director Mr. Sam Kwandi.
The Securities and Exchange Commission (SEC) disclosed this in a statement made available to Nairametrics.
The statement explained that Midland Capital and its MD Sam Kwandi are being accused of obtaining the sum of N40 million from one Mr Patrick Aibhalemen under the pretence that they would invest the money on his behalf under a ‘Guaranteed Investment Product’.
However, they did not invest the money, thus 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.
SEC noted that on July 2008, the defendants conspired with one Laurence Ogbebor who is currently at large, to obtain the sum of N40,000,000 from one Patrick Aibhalemen Harrison Ataman under the pretence that they were Fund Managers. Part of the statement by SEC explained:
- “Midland Capital Market Ltd and Sam Kwendo Bandi together with one Lawrence Ogbebor presently at large, all of No. 10 Zambezi Crescent, Maitama, Abuja on or about July 2008 in Abuja within the jurisdiction of the court are accused to have obtained the sum of N40 million from one Patrick Aibhalemen Harrison Ataman under the pretence that they are into Business as Fund Managers that they were going to invest the said sum under ‘A Guaranteed Investment Product’ which they did not and thereby committed an offence contrary to Section 1 (1) of Advanced Fee and other Fraud Related Offences Act 2006 and punishable under Section 1 (3) of the same Act.”
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Note that when the case came up for the close of defence, the last defence witness told the court that the funds were invested but profits were affected by the global financial crises at the time. The judge, thereafter, adjourned the matter to July 13 2023 for cross-examination of the witness.
According to SEC, the Federal High Court in Abuja had previously ruled that Midland and its Managing Director, Mr Sam Bandi, had a case to answer on allegations of falsely obtaining N40m from a client.
- “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,” the Commission said.”