Wonder bank investors sue SEC, CBN over deposits 4 years ago 7

Some investors of Nospecto Oil and Gas Limited, have sued the Security and Exchange Commission and the Central Bank of Nigeria over a non-release of about N22bn they invested in the company.

The suit, in which Nospecto is joined as the third defendant, is slated for mention on Monday (today) before Justice James Tsoho of a Federal High Court in Lagos.

The CBN had in May 2007 halted the business of Nospecto and frozen the company’s accounts on the grounds that it was carrying out an illegal business.

Fourteen of the investors, had through their counsel, Mr. Debo Adeleke, filed the suit on behalf of 13,741 other investors under the aegis of Joint Venture Partners.

But the investors are contending that the CBN ought to order the SEC to release the money to them.

Though they seek an order compelling Nospecto “to stop forthwith its illegal, unlawful fraudulent business and banking activities,” they also want the court to order the CBN to release the sum of N22,445,571,446.84 to the investors through their lawyer in a profit-yielding accout.

The investors are among other prayers, seeking the court to declare that they are entitled to the release of the money said to be in custody of SEC on the instruction of CBN.

They also want the court to declare that the continued withholding of the money frozen from the accounts of Nospecto by the CBN without releasing same to them “is unlawful and inimical to the over-riding interest of the plaintiffs”. Home Page

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