Description

Between 2007 and 2008, Union Bank obtained foreign loans of US$150 million from Merrill Lynch International and US$120 million from HSBC Bank Plc, totalling about ₦30.477 billion. The SEC alleged that the loans, purportedly obtained for money-market operations, were transferred to Union Trustees Ltd., Union Bank’s wholly-owned subsidiary, which, through Falcon Securities Ltd., used the funds to purchase 609,852,000 units of Union Bank’s shares. The SEC alleged that the arrangement was designed to create a false appearance of active trading in Union Bank’s shares and manipulate the capital market, contrary to the ISA and SEC Rules.