Why investment broker sued him for N1.7 billion
Details of how jet set pastor, Bishop David Oyedepo, acquired his private jet have featured in a court case instituted against him by Valueline Securities and Investment Limited, a stocks brokeage firm. In the suit, the firm (complaint) stated that Oyedepo’s acquisition of a private jet crumbled an agreement he had with them to manage a his stocks investment worth N9 billion. Aggrieved, the firm has sued Oyedepo, his wife, Abiola, his business interests and the Nigeria Stock Exchange, NSE, among others. While the complainants said Oyedepo breached the agreement between them, it accused the NSE of showing prejudice against it. In his bid to purchase a jet, Oyedepo was said to sold majority of the shares, despite advice by the stocks manager not to do so. The total shares sold by the pastor to raise funds for his private jet amount N3 billion. The sale of the stocks, the firm explained, resulted in huge losses. Matters would later be compounded by the global economic meltdown, which caused further crash of the stocks value.
Suspecting a foul play, Oyedepo was said to have petitioned the Economic and Financial Crimes Commission, EFCC, on the claims that the investment managers embezzled the funds, particularly the marginal loans they claimed to have sourced from banks to shore up the stocks value. Contrary to Oyedepo’s purported claim, Valueline Securities and Investment Limited said the loans helped to boost the stocks value.
After a six-year investigation, the firm said the EFCC absolved it of wrong doing. To stocks manager, the petition was a decoy by Oyedepo’s petition to “avoid their financial obligations to the plaintiffs”. The obligations were a payment of 2.25 per cent of total value of the investment and 10 per cent as annual incentive fee.
Unrelenting, Oyedepo, reportedly dragged the firm before the Nigerian Stocks Exchange, NSE, which ultimately froze its trading account. The firm said the NSE was biased against it. They are therefore praying the Federal High Court t o award N780m being their professional fee, and N61m against the NSE for closing its account. Also, the firm wants N1bn awarded against for general damages. Hearing has been adjourned till 16 February.
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