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.


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