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How Indian Defrauded Nigerian Banks Of N32b, Court Told! - Crime - Nairaland

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How Indian Defrauded Nigerian Banks Of N32b, Court Told! by SleekyP(m): 7:17am On Apr 22, 2015
Bashir Abdullahi, a witness of the Economic and Financial Crimes Commission (EFCC) in the ongoing trial of Patrick Fernandez, an Indian businessman before a Federal High Court in Lagos, on Tuesday gave graphic details of how the accused defrauded some Nigerian banks to the tune of N32 billion.

Fernandez is standing trial alongside three of his companies on a 56 count-charge of fraud.

The witness, who is a former investigator with the EFCC, told the court that the commission learned of the fraud when one of the banks contacted the agency’s Financial Intelligence Unit.

According to him, in July 2008, he was assigned to investigate the case of suspicious financial activities involving Fernandez and his companies.

The affected banks, he said, were Zenith Bank, Afribank, Intercontinental Bank, Union Bank and Wema Bank. His investigations, he said, revealed high volume transactions from one account to another, which he said were suspected to be fraudulent.

Abdullahi said: “In our findings, we discovered that the accused was involved in cheque-kitting and round tripping. It is also known as Lazy Susan, a business model.”

Lazy Susan, he said, involves members of a business group transferring money from one sister company to another without selling any commodity, using money obtained from other banks.

He said as at September 2007, the accused had less than N2million in his account. “The volume of transaction was also minimal, starting with N20million. Within the same month, it rose to N600million. The volume of transaction also sky rocketed to billions of naira within just three months,” he said.

Abdullahi said the transactions involved the use of “suspended cheques” which did not go through the clearing house initially.

“If he brings a cheque, credit will be given to him immediately without going through clearance. Because he has a cheque discounting facility, if he brings N1billion cheque, they will give him N800million,” Abdullahi said.

He said Wema Bank, for instance, discovered that it allegedly lost N23billion to the activities of Fernandez and his companies.

On how the fraud was perpetrated, he said a high ranking staff of Wema Bank aided the fraudulent transactions.

The Wema Bank insider, the witness said, “was suppressing the cheque”, such that when other banks asked whether there is money in Fernandez’s account, the official would answer in the affirmative. “All the banks will ask Wema Bank staff, is there N5billion in his account, and he will say yes,” said the witness.

Abdullahi said the accused person claimed to be involved in oil and gas business which he said was “cash-intensive” and therefore needed to move money from one bank to the other.

He said the bubble burst when the banks, at the clearing house, discovered that “they were clearing the same cheque”.

Under cross examination by defence counsel, James Ocholi (SAN), Abdullahi said he did not know the banks’ account officers or branch managers who dealt with Fernandez.

He said the defendant’s companies were duly incorporated, and that his accounts were opened through “traditional” means.

He added Fernandez was considered high net-worth individual and so the banks took him for his words.

“If they had not taken him for his words, we won’t be talking about missing billions. The accused person stated that a point, he became the darling of the banks,” the witness said.

He said the investigation was triggered by a Suspicious Transaction Alert received from Afribank.

“They reduced the complaint to intelligence and forwarded to EFCC operatives for investigation. I don’t know if there was a petition,” Abdullahi said.

Justice John Tsoho adjourned till June 16 for continuation of trial



http://dailyindependentnig.com/2015/04/indian-defrauded-nigerian-banks-n32b-court-told/
Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by SleekyP(m): 7:21am On Apr 22, 2015
shocked

2 Likes 1 Share

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by TeamSimple(m): 7:42am On Apr 22, 2015
When a Nigerian frauds their state government now,they will cry foul..Imagine india angry so they don sabi classify Job pass us abi?

3 Likes

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by bigtt76(f): 7:44am On Apr 22, 2015
Serves the bank right. They will never advance you without collateral being a Nigerian but would go any length to please foreigners #notxenophobic undecided

78 Likes 2 Shares

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by SleekyP(m): 8:56am On Apr 22, 2015
bigtt76:
Serves the bank right. They will never advance you without collateral being a Nigerian but would go any length to please foreigners #notxenophobic undecided
Exactly

6 Likes

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by Dcaliphate(m): 10:25am On Apr 22, 2015
chai!!! mugulizing us in our own land. Aru!!!
Its rather unforrunate that those who go through rigorous scrutiny at banking transactions are actually paupers, this is why d rich easily defraud banks.
i hopr they learn and adjust their modus operandi.

5 Likes

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by Nobody: 10:25am On Apr 22, 2015
all na because he's white, So he is considered higly networth and not worthy of scam. How can you take someone for his words for a 23 billion naira cheque?

5 Likes

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by Nobody: 10:26am On Apr 22, 2015
Hian
Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by Nobody: 10:26am On Apr 22, 2015
wish them luck
Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by Chris95(m): 10:26am On Apr 22, 2015
Una tink sey na only una sabi way?
Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by efilefun(m): 10:27am On Apr 22, 2015
Chaii Imagine those slowpokes scamming a Nigerian bank... Smh when those bankers too can walk naked just to please a foreign customer while a Nigerian seeking loan might even be told to bring the coffin of his great grand father... Serves them right jawe

6 Likes

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by celibate: 10:27am On Apr 22, 2015
Not new.
Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by trybe(m): 10:27am On Apr 22, 2015
IndiaN yahoo

1 Like

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by adahgold(m): 10:27am On Apr 22, 2015
Is good for them if na naija person ask for d loan dey will not give...

1 Like

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by Nobody: 10:27am On Apr 22, 2015
astana1:
GEJ administration marginalized AND SACKED PEOPLE TO SET OUT HIS TRIBALISTIC AGENDA

Igbo man Ike Nkeremandu, Deputy Senate President

Igbo man Emeka Ihedioha, Deputy Speaker

(Imagine that in a country with 6 geopolitical zones, one occupies the two of the 4 major National Assemby leadership positions!!)

Igbo man Pius Ayim, Secretary to the Federal Government

igbo man Godwin Emefiele is the governor of the central bank of Nigeria

Igbo woman, Finance Minister and Co-ordinating Minister for the Economy

Igbo woman petroluem Minister

Igbo man Nebo, Power Minister

Igbo man Minister of aviation

Printing and Minting - Igbo

HEAD OF DSS -Igbo

MINISTER OF Health - Igbo

Jonathan removed other tribes from head of parastatals and put Igbos there but that would be addressed now. Bureau of statistics was filled up with Igbos.

Even the Hausas/Fulanis in military have never done this above show of shame and pure tribalism. And Igbos were quiet all through that administration cos others were marginalised.

9 Likes

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by Texcoco(m): 10:28am On Apr 22, 2015
Sophisticated con artistry never seen before....

1 Like

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by tunwumi: 10:28am On Apr 22, 2015
Nigerian bankers are so gullible that they will give loan to foreigners and ignore their own. When it goes bad the turn to their own for bail out. Smh

1 Like

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by stonemind(f): 10:28am On Apr 22, 2015
G
Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by beekaymee(m): 10:29am On Apr 22, 2015
Dis mumu Indians Don start. Instead make he go India dey take care of him camel or elephant get dey there dey do fraud mtchew ………… asa palapala
Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by toluad: 10:29am On Apr 22, 2015

1 Share

Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by ignis: 10:29am On Apr 22, 2015
Indians are fast learning from Nigerians
Re: How Indian Defrauded Nigerian Banks Of N32b, Court Told! by bloglover(m): 10:29am On Apr 22, 2015
shame!!!! If we do now them go talk say we don start again, but na them worst pass

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