Fraud
Fraud In Stanbic IBTC As Staff Allegedly Converts N250 Million Bad Loan To Personal Use
A federal high court sitting in Lagos south west Nigeria has adjourned till 24th of May 2023,a case of Stanbic IBTC staff alleged to have fraudulently converted the sum of N250 Million to his personal use.
When the case was mentioned,the Police prosecuting counsel M. U.Usman told the court that,the defendant has approached the bank for amicable settlement,in view of this development he urged the court to give fairly long adjournment.The defendant’s counsel Mr.M.N. Oku did not raise any objection.
Consequently,the presiding Judge, Abimbola Awogboro adjourned till 24th of May,2023 for report of settlement.
Ajayi Olusola a staff of StanbicIBTC bank was arraigned before the court based on a petition written and jointly signed on behalf of Stanbic IBTC Bank by Kayode Agbetoye
Manager, investigations and Fraud Risk and Rekia Eletu
Head, Investigations and Fraud Risk, the petition titled “Alleged Diversion of Approved Written -off Amounts for Bad Loans by Olusola Ajayi Others.
The petition was written and address to the Commisioner of Police Special Fraud Unit 13b,Milverton Avenue Ikoyi Lagos.Nigeria.
Stanbic IBTC Bank PLC in the said petition stated thus:
We are currently investigating a case of alleged diversion of approved Written-off Loan by some staff members and others. The amount to be written-off, as approved by the Board,were expected to be posted into loan accounts of the beneficiary debtors, to nil off the outstanding loans as provisioned. It was however discovered that the written off amounts were diverted and credited into personal and corporate accounts where the funds were utilized by the account owners.
Our preliminary findings revealed that on 21 April 2021, the Bank’s Board approved to write off total amount of N37,628,329.00 on 28 defaulting customers’ accounts. The request was to write off the outstanding exposures (as well as the debit interest that would have accrued before the actual entries are passed). Also, the Board’s approval was obtained on 21 April 2021 to write -off total amount of N2,462,057,201.71 on 848 defaulting customers’ accounts.
Some of the amounts approved for write off into the loan accounts of the defaulting customers were discovered to have been diverted and credited into a Corporate Account, Able System Services Nigeria Ltd. (ASSNL), a customer of the bank.
A review of the transfers from ASSNL’s account showed that 36 beneficiaries in other banks received total amount of N55,118,002 between 2015 and 2021. Three (3) of these recipients are customers of Stanbic IBTC bank – Ajayi Olusola (staff), Ayodele Omoniyi Olaogun and Hakeem Abdulliadi. Olusola Ajayi received total amount of N12.5Million into his Bank account from between November 2020 and May 2021. Also, Ayodele Omoniyi Olaogun received total amount of N9.74million to his Access Bank account from ASSNL between September2015 and May 2021.
Ajayi Olusola is an employee of the bank. He was a staff member of MIS Unit and currently a Business Support & Resolution (BS&R) team in the bank member was a staff in the member Bank. Ayodele Omoniyi Olaogun is ex-staff and currently Olaogun is an ex-staff of the bank He was a staff of the bank. He was a staff member of the MIS Unit.
We therefore request that you use your good office to conduct a detailed investigation into this incident and effect the arrest of the suspect(s) for prosecution.
We count on your usual cooperation
The petition was was investigated and at the end of the investigation five count charge was filed before the court against Ajayi Olusola and his company Abel Services Nigeria Limited and others at large by the Police Legal Officer Barrister Azubuike Sylvester.
The amended version of the charge as filed before the court, by Police Legal Officer Azubuike Sylvester is stated below:
AMENDED CHARGE
COUNT 1
That you AJAYI OLUSOLA ‘M’, ABEL SYSTEMS SERVICES NIG. LTD, AYODELE OLAOGUN, MR. HAKEEM ADISA ABDULHADI both now at large, between 2015 and 2021 at Stanbic IBTC Bank in Lagos, within the Jurisdiction of the Federal High Court while working as a staff at Stanbic IBTC Bank did conspired amongst yourselves and others now at large to commit a felony to wit: obtain the sum of N205,000,000 (Two hundred and five Million Naira Only) property of Stanbic IBTC Bank by False Pretences and thereby committed an Offence Contrary to Section 8(a) and Punishable Under Section 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act No 14 of 2006.
COUNT 2
That you AJAYI OLUSOLA ‘M’, ABEL SYSTEMS SERVICESNIG. LTD, AYODELE OLAOGUN, MR. HAKEEM ADISA ABDULHADI both now at large, between 2015 and 2021 at Stanbic IBTC Bank in Lagos, within the Jurisdiction of the Federal High Court while working as a staff at Stanbic IBTC Bank by False Pretence and with intent to defraud, obtained the sum of N205,000,000 (Two hundred and five Million Naira Only) property of Stanbic IBTC Bank by Falsely representing to the bank that you applied the funds as approved by the Board of the bank for the purpose of offsetting written off debt otherwise known as BAD DEBTS. Whereas you credited ABEL SYSTEMS SERVICES NIG. LTD and subsequently converted the money to your own use and benefits amongst yourselves and others at large.
The representation you knew to be false or did not believe to be true or which you made recklessly and thereby committed an Offence Contrary to Section 1(1)(a) and Punishable Under Section 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act No 14 of 2006.
COUNT 3
That you AJAYI OLUSOLA ‘M’, ABEL SYSTEMS SERVICES NIG. LTD, AYODELE OLAOGUN, MR. HAKEEM ADISA ABDULHADI both now at large, between 2015 and 2021 at Stanbic IBTC Bank in Lagos, within the Jurisdiction of the Federal High Court, did convert to your own use and benefits the sum of N205,000,000 (Two hundred and five Million Naira Only) property of Stanbic IBTC Bank, which sum you knew or reasonably ought to have known, was the proceed of an unlawful act, to wit: obtaining money by false pretences from Stanbic IBTC Bank, Lagos and thereby committed an Offence Punishable Under Section 15(2)(b) of the Money Laundering (Prohibition) Act 2011 as Amended in 2012.
Fraud
Financial Scandal: Deputy CBN Governor Aishah Ahmad Detained Over $300 Million Bank Deal Mystery
In a startling development this weekend, the Department of State Services (DSS) took Mrs. Aishah Ahmad, the Deputy Governor of the Central Bank of Nigeria (CBN) overseeing Financial System Stability, into custody.
The focal point of this action is centered around Titan Trust Bank’s (TTB) controversial takeover of Union Bank. Ahmad is undergoing intensive questioning about TTB’s $300 million funding source used for the Union Bank acquisition.
Back in December 2021, Titan Trust Bank, then Nigeria’s emerging financial entity, clinched a deal with Union Bank after primary stakeholders offloaded a significant 89.39% of their stake. In a joint statement released on Thursday by both banks, the acquisition is pending regulatory green lights and various other financial criteria. Should it materialize, TTB will command an 89.39% stake in Union Bank’s share capital.
The statement elaborates, “Union Bank’s board today informed NG X and the Securities Exchange Commission of an agreement between its investors — Union Global Partners Limited, Atlas Mara Limited, and others — and Titan Trust Bank. The pact concerns the divestment of their Union Bank stakes in favor of TTB.”
Union Bank’s erstwhile chairperson, Mrs. Beatrice Hamza Bassey, spoke positively about the acquisition, expressing optimism about the post-approval phase. She praised the bank’s present investors for their transformative contributions over the past decade to one of Nigeria’s most enduring financial institutions.
A update also brought to the fore Mrs. Aishah Ahmad’s appointment by the previous President, Muhammadu Buhari, in October 2017. Before this, she rendered her expertise as an Executive Director at Diamond Bank Plc. She filled the shoes of Dr. Sarah Alade, who vacated the Deputy Governor, Economic Policy role at CBN earlier in March 2017.
Managing Director/Chief Executive Officer, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe has called on the Nigeria Electronic Fraud Forum, NeFF to come with solutions to the challenges posed by electronic fraud to financial system.
According to a report published in Vanguard Newspaper, she made this call in Lagos while speaking at the 3rd quarter general meeting of NeFF.
Nneka Onyeali-Ikpe explained that e-fraud are activities carried out online to exploit individuals and business entities for financial gain.
She listed examples of e-fraud to include: Phishing; Advanced fee fraud (419); Online Auction Fraud; Identity Theft; Tech Support Scams; Online Romance Scam; Investment Scam; Business Email compromise; Ransomware; Online Rental Schemes; Pyramid Schemes; and Click Fraud.
Highlighting the rising trend of e-fraud in the country and the associated challenges, the Fidelity Bank boss said: “According to data released by NIBSS, the value of electronic payment transactions in Nigeria increased by 298% YoY from N34.04 trillion in Q1 2022 to N135.52 trillion in Q1 2023.
“As technology continues to advance at an unprecedented pace, our reliance on digital transactions has grown exponentially. However, with this rise in digital interactions, the threat of e-fraud has become a significant challenge affecting individuals, businesses, and industries alike.
“The banking industry lost a total of N14.3 billion to electronic fraud in 2022, up from the N12.7b reported in 2021. As at Q1 2023, the total fraud loss was N5b according to the NIBSS Annual Fraud Landscape reports.
“The Mobile channel is the most exploited channel by fraudsters in 2021 and 2022 with 42,821 and 45,090 reported fraud records respectively. Total fraud count in 2021 was 123,918 and 101,668 in 2022.
“E-fraud has permeated multiple industries, spanning from banking and finance to e-commerce and beyond. These cybercriminals leverage advanced methods to exploit vulnerabilities, gaining unauthorised access to crucial data and funds. The repercussions of e-fraud are not limited to financial losses; they also extend to eroding trust and eroding brand reputation.
Fraud
Lotus Bank of Fraud: Customer Laments As N20M Disappeared From Her Account, Reveals Why Nigerians Shouldn’t Trust The Bank
Lotus Bank finds itself embroiled in controversy as a customer comes forward, alleging that the bank tampered with her account and failed to compensate her for an erroneous reversal of funds. The customer claims that Lotus Bank deleted transaction records and invaded her privacy, raising serious concerns about the bank’s ethics and practices.
According to the customer, on March 12, 2023, she attempted to transfer twenty million naira (20,000,000) from her account, but the transaction failed and the money was not reversed immediately. After contacting Lotus Bank, she was assured that the reversal would be processed due to network issues. However, despite waiting for several days, the 20 million naira reversal did not occur, causing her distress and frustration.
Unexpectedly, on March 15, the customer began receiving multiple alerts of reversals, lasting for several hours. Astonishingly, Lotus Bank mistakenly reversed an exorbitant amount of one billion, eight hundred million naira (1,800,000,000) into her account while attempting to reverse the initial twenty million naira (20,000,000). Realizing the error, she promptly informed the bank of the erroneous reversal and the involved amount.
In response, Lotus Bank promised to compensate her but requested permission to withdraw the excess amount. The customer granted permission, and for three days, the bank left the 1.8 billion naira in her account without completing their withdrawal. However, during this time, Lotus Bank allegedly tampered with her account and erased all records related to the reversal, including SMS alerts, email notifications, and even the statement of account showing the erroneous transaction. Furthermore, the bank deleted all other recent transaction records, including transfers and POS transactions.
Disturbed by the situation, the customer visited her bank to complain and request a statement of account. It was during this process that she discovered the extent of the tampering by Lotus Bank. The bank’s actions not only violated privacy and banking ethics but also left her without any record of recent transactions, including failed transfers. As a result, she was unable to provide sufficient evidence to support her claim.
Lotus Bank has yet to provide any transaction history to refute the customer’s allegations, leaving her and others questioning the bank’s credibility. The customer is seeking redress for the failed transaction and the promised compensation that Lotus Bank has seemingly reneged on. The incident has raised concerns about the bank’s practices and highlights the need for the Central Bank of Nigeria (@cenbank) to investigate the matter thoroughly.
As the situation unfolds, Lotus Bank faces mounting pressure to address the customer’s claims and demonstrate transparency in their operations. The affected customer, supported by screenshots taken during the reversal process, hopes for a resolution to her ordeal and urges the bank to fulfill its responsibilities promptly. The involvement of the Central Bank of Nigeria is seen as vital to ensuring a fair and impartial investigation into the alleged misconduct by Lotus Bank.
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