Court to Hear N12.3bn Fraud Case Against Otudeko

The Federal High Court in Lagos has scheduled January 20, 2025, for the arraignment of the Chairman of Honeywell Group, Chief Oba Otudeko, and a former First Bank Managing Director, Stephen Onasanya, over allegations of embezzling N12.3 billion from First Bank.

Otudeko, who was previously the chairman of First Bank of Nigeria Holdings, will be arraigned alongside Stephen Onasanya, a former board member of Honeywell; Soji Akintayo; and a company allegedly linked to Otudeko, Anchorage Leisure Limited.

According to the Economic and Financial Crimes Commission (EFCC), the defendants are accused of committing fraud between 2013 and 2014 in Lagos through multiple transactions totalling N5.2 billion, N6.2 billion, N6.15 billion, N1.5 billion, and N500 million.

In a 13-count charge filed on January 16, 2025, by EFCC counsel Mrs. Bilikisu Buhari, the commission also alleged that the defendants falsified and presented forged documents to mislead the bank.

Chief Oba Otudeko, Stephen Onasanya, Soji Akintayo, and Anchorage Leisure Limited are set to appear before Justice Chukwujekwu Aneke, who has been assigned the case with the reference number FHC/L/20C/2025.

In the first count, the Economic and Financial Crimes Commission (EFCC) accused the defendants of conspiring to fraudulently obtain N12.3 billion from First Bank Limited. They allegedly misrepresented the amount as credit facilities applied for by Tech Dynamic Links Limited and Stallion Nigeria Limited, despite knowing the claim was false.

The EFCC further alleged that on November 26, 2013, in Lagos, the defendants obtained N5.2 billion from First Bank under the false pretence that it was a credit facility applied for by V Tech Dynamic Links Limited.

The anti-graft agency alleged that between 2013 and 2014 in Lagos, the defendants fraudulently obtained N6.2 billion from First Bank Limited by falsely claiming the amount represented credit facilities applied for and disbursed to Stallion Nigeria Limited, despite knowing this was untrue.

In the fourth count, the defendants were accused of conspiring to utilise N6.15 billion from the obtained funds.

The commission stated that the alleged offences violated Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006, and are punishable under Section 1(3) of the same Act.

In counts five and six, the EFCC alleged that on December 11, 2013, in Lagos, the four defendants caused Honeywell Flour Mills Plc to retain N1.5 billion, knowing that the money was part of the proceeds of their unlawful activities involving obtaining funds through false pretences. This violates Section 18(c) and 15(2)(d) of the Money Laundering (Prohibition) Act, 2011 (as amended), and is punishable under Section 15(3) of the same Act.

The EFCC further accused Chief Oba Otudeko, Stephen Onasanya, Soji Akintayo, and Anchorage Leisure Limited of converting N500 million for the use of Honeywell Flour Mills Plc on December 17, 2013, in Lagos. They were alleged to have known that the sum was part of the proceeds of unlawful activities involving false pretences, which is contrary to Section 15(2)(b) of the Money Laundering (Prohibition) Act, 2011 (as amended), and punishable under Section 15(3) of the same Act.

In count eight, the EFCC alleged that on or about September 3, 2013, in Lagos, the defendants conspired to commit a crime by creating a forged document titled “Letter of Application.” The document was intended to deceive First Bank into believing it was genuine and came from V-Tech Links Dynamic Limited. This act violates Section 3(6) of the Miscellaneous Offences Act, Cap M17, Laws of the Federation of Nigeria 2004, and is punishable under Section 1(2)(c) of the same Act.

The EFCC further alleged that on the same date, the defendants conspired to produce another false document titled “Authorisation to Issue Investment Certificate to First Bank.” This document was also meant to mislead First Bank into believing it was genuine and originated from V-Tech Links Dynamic Limited. This constitutes an offence under Section 3(6) of the Miscellaneous Offences Act, Cap M17, Laws of the Federation of Nigeria 2004, and is punishable under Section 1(2)(c) of the same Act.

 

The commission also alleged that on or about October 31, 2014, in Lagos, the first to third defendants arranged for Abiodun Olatunji and Raymond Eze to transfer N6.2 billion to Stallion Nigeria Limited’s account at First Bank. The EFCC claimed that the defendant “reasonably ought to have known formed part of the proceeds of unlawful activities to wit: fraudulent false accounting and you thereby committed an offence contrary to Sections 18 (c) and 15(2)(b) of the Money Laundering (Prohibition) Act, 2011 (as amended) and punishable under Section 15(3) of the same Act.”

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In count 12, the EFCC alleged that on or about December 11, 2013, in Lagos, the first and second defendants arranged for Abiodun Olatunji and Raymond Eze to transfer N2.09 billion from Stallion Nigeria Limited’s account at First Bank to Emmerado Logistics Limited’s account at First City Monument Bank. The EFCC claimed that the defendants would have known “which sum you reasonably ought to have known formed part of the proceeds of unlawful activities to commit fraudulent false accounting, an offence contrary to Sections 18 (c) and 15(2) (b) of the Money Laundering (Prohibition) Act, 2011 (as amended) and punishable under Section 15(3) of the same Act.

The EFCC alleged that on or about September 3, 2013, in Lagos, Oba Otudeko, while serving as Chairman of First Bank Plc, had a personal interest in a loan of N6.15 billion requested by V Tech Dynamics Links Limited. According to the EFCC, “which interest was not declared to the bank, an offence contrary to Section 18(1) of the Banks and Other Financial Institutions Act 2004 and punishable under Section 18(2) of the same Act.”

 

 

 

 

 

Content Credit| Igbakuma Rita Doom

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