Court Orders Agropartnership, Farmforte to Fully Refund Investors' Funds, Freezes Accounts
- A tribunal has ruled that Agropartnerships and Farmforte’s operations are illegal
- All assets linked to the owners and the affected companies will be forfeited and taken over by SEC for the investors
- Money found in the account of the co-founders and their companies will be distributed to parties with an interest
The Agropartnerships agritech crowdfunding website has been found to be operating illegally in Nigeria, according to the Abuja-based investments and securities tribunal.
Recall that the SEC earlier warned that Nigerians should beware of some platforms that are illegal.
The verdict was made on June 8 by a five-member panel of the tribunal, led by Abubakar Ahmad served and also included Nosa Osemwengie, Jude Udunmi, Albert Otesile, and Emeka Madubuike.
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In a report by The Cable, the court also mandated the freezing of the bank accounts used for illegal capital market activity by Agropartnerships, Farmforte, Osazuwa Osayi, and Osayimwense Uyi.
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The development comes after the EFCC in a report declared the cofounders wanted for illegal fund diversion. The anti-graft commission publicized the pictures of both individuals and listed them as sought for obtaining money by false pretense and fraudulent diversion of funds in a publication dated June 9.
How it all started
Early in 2022, several investors resorted to social media to express their frustration with Nigerian agritech crowdfunding platforms that were holding up the payment of rewards on their investments.
Farmforte Limited-powered investment portal Agropartnerships pleaded with investors to be patient during these delays in January 2022.
The company acknowledged that the COVID-19 epidemic had an impact on its business operations in February 2022 and said that it had created precise payout schedules to satisfy investors.
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Co-CEO of Agropartnerships, Osayimwense Uyi said in a video that was published on the organization's official Instagram page.
The agritech crowdfunding website also stated in March 2022 that payouts would start up again in July 2022 but failed to commence payment as expected.
A few days later, the Securities and Exchange Commission (SEC) put Farmforte and Agropartnerships' offices under seal because they were allegedly involved in illicit investing operations.
The corporations were charged with engaging in capital market activities without a license by the top capital market regulator.
After a few days, the Securities and Exchange Commission (SEC) shut the Agropartnerships and Farmforte locations because they were allegedly involved in illicit investment operations.
The corporations were charged with engaging in capital market activities without a license by the top capital market regulator.
More on the court case
SEC filed a lawsuit with the investments and securities tribunal in an effort to have the activities of the platforms declared illegal in Nigeria after becoming dissatisfied with the way that Agropartnerships, Farmforte, and other platforms were operating.
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The defendants' bank accounts were requested to be frozen by the capital market regulator, who also requested that the monies be distributed to the public depositors.
The defendants are divided into two. The first set being; Farmforte Agro & Allied Solutions, Palmhub Agro-development, Freshforte Retail Services, Forest Capital Limited, Veritas Vision International, Agropartnerships Technology Limited, Cropuscle Investments Limited, Cropuscle Healthcare Limited, Kayvees Ventures, Kayvee Nigeria, Castore Agency Services, Travelforte Services, Agvo Services, Farmforte Ventures, O & B foods, Osazuwa Osayi, Osayimwense Uyi, and Mutiu Adebowale, who are 1st to 18th defendants, respectively.
The second set of defendants are; Access Bank, Ecobank, Fidelity Bank, First Bank, Guaranty Trust Bank, Keystone Bank, Polaris Bank, Providus Bank, Stanbic Bank, Standard Chartered Bank, Sterling Bank, United Bank for Africa, Wema Bank, and Zenith Bank.
The company said that among other things, processing machinery malfunctions and problems with the world's supply chains were to blame for our operating hiccups.
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The SEC said that throughout the lawsuit's hearing, the first set of defendants solicited donations from unwary members of the public and assured them returns in an unregistered collective investment scheme.
How the court ruled
The tribunal cited Sections 284 and 294 of the Investments and Securities Act (ISA) 2007 as legal grounds for its conclusion that it has the power to hear the case and render a ruling.
The court determined that the funds discovered in the bank accounts of the first set of defendants should be moved to an interest-bearing escrow account for eventual distribution to parties with an interest in the case.
It stated:
Consequently, it is ordered as follows: the claimant (SEC) to seal up all business premises of the 1st, 6th, 16th, and 17th defendants anywhere found in Nigeria for engaging in unlawful capital market operation.1st, 6th, 16th, and 17th defendants to render accounts of their activities since inception till the date of judgment, particularly in respect of the running of Farmforte Agro and Allied Solutions Ltd (the 1st defendant) and Agropartnerships Technology Limited (the 6th defendant) to the claimant.
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It also stated that all assets linked to the first, sixth, sixteenth, and seventeenth defendants, whether discovered in Nigeria or elsewhere, were to be forfeited and taken over by the claimant for the purpose of satisfying the investors' claims.
In accordance with section 67(2) of the Investments and Securities Act of 2007, the court additionally ordered the first and sixth defendants to pay fines of N500,000 each, while the sixteenth and seventeenth defendants were ordered to pay fines of N100,000.
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Source: Legit.ng
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