EFCC arrests BGL boss, Okumagba over alleged N28.9bn fraud

The Managing Director of BGL Plc, Mr. Albert
Okumagba, has been arrested by officials of the Economic
and Financial Crimes Commission EFCC for allegedly
being involved in a N28.9bn fraud.

According to Punch, Okumagba was arrested on
Wednesday September 9th following a petition by the
Security and Exchange Commission in May, 2015.

"The EFCC has arrested Mr. Albert Okumagba,
Group Managing Director of BGL Plc, a
financial services company, for offences allegedly
bordering on obtaining money by false pretences.
The 51year old, who hails from Delta State, was
picked up late Wednesday, September 9, 2015, by
operatives of the EFCC. His arrest was
triggered by investigation into a petition submitted
to the anti-graft agency by the Security and
Exchange Commission in May 2015. The suspect
is alleged to have diverted the sum of N28.9bn
being proceeds of private placements of 4.3bn
ordinary shares of 50k each at N7.00k per share
in 2007. The company, whose subsidiaries include
BGL Capital, BGL Private Equity, BGL
Security and BGL Asset Management, allegedly
lured 50 investors from across the country into
subscribing to the company’s shares, promising them
options of liquidity and exit within two years"the
source said
The source added that contrary to promises made to them
by Okumagba, his investors were not able to liquidate
their assets. He also failed to fulfill a promise of listing
his organization, BGL on the Securities and Exchange
Commission two years after the offer in 2008.

Confirming his arrest, the Head of Media and Publicity
of the EFCC, Wilson Uwujaren said he was being
interrogated. No fewer than 40 petitions were said to
have been sent to the SEC against BGL by aggrieved
capital market investors in the country as well as the
Rivers State Ministry of Finance.