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Tag: fraud

  • Alleged N110bn fraud: Kogi board of internal revenue paid tax consultant N1.1bn in 8 months – Witness

    Alleged N110bn fraud: Kogi board of internal revenue paid tax consultant N1.1bn in 8 months – Witness

     An Economic and Financial Crimes Commission (EFCC) witness told an Abuja Court that the Kogi State Board of Internal Revenue (KSIRS) paid over ₦1.1 billion in commissions to a tax consultant, Bespoke Business Solutions Limited,

    David Ajoma, who made this  known while testifying in the going trial former, Kogi governor, Yahaya Bello and two others, said the amount was paid within eight months in 2019.

    Bello is being prosecuted before Justice Maryanne Anenih, alongside Umar Shuaibu Oricha and Abdulsalam Hudu by the EFCC.

    They were alleged to have committed criminal breach of trust in respect of the sum of N110,446,470,089, among others.

    Bello and his co-defendants, however, pleaded not guilty to the charge.

    The witness presented bank statements for the account of the tax consultant, Bespoke Business Solutions Limited, detailing several large credit entries from the KSIRS in 2019.

    Ajoma also said that N952. 4 million was withdrawn by the consultant from his account with Sterling Bank within the same 8 months leaving a balance of N212, 525, 569 in the account.

    The witness led in evidence by prosecution counsel, Kemi Pinheiro, SAN however said that he does know details of the business between Kogi State Internal Revenue Service and the Consultant.

    Prior to engagement of the tax consultant by the Kogi tax board, the witness told the court that the company had over N2 million in the account.

    Read Also: JUST IN: Supreme Court okays Sule Lamido, sons, others’ trial in Abuja for alleged N1.35bn fraud

    He added that credit inflows into the account rose immediately the tax consultancy business took off.

    Under cross examination by Joseph Daudu SAN, counsel to Bello and Umar Shuaib Oricha, the witness admitted that the name “Kogi State Government” did not feature in the bank transactions.

    He also admitted that bank account belongs to customer and that such customers can make withdrawals unhindered as long as such withdrawals are within the stipulated laws.

    The witness admitted that the Central Bank of Nigeria (CBN) regulations permitted N5 million maximum withdrawal for individuals while corporate entity is N10 million maximum per withdrawal.

    He said that the tax consultant did not breach CBN regulations in the multiple withdrawals, hence, no report of suspicion was made against the tax consultant.

    The banker also admitted that Yahaya Bello’s name and his co-defendants did not feature in the bank statement as beneficiaries of any of the withdrawals.

    The witness also admitted that there is a difference between Kogi state government and Kogi State Internal Revenue Service adding that the two are separate entities.

    Justice Maryann Anenih adjourned continuation of trial until Feb. 10.(NAN)

  • Nigerian banks to consider advanced biometrics to combat electronic fraud

    Nigerian banks to consider advanced biometrics to combat electronic fraud

    The CEO of Environ Tech Systems, Ive Chike Meme, has urged Nigerian banks to embrace Advanced Vein Biometrics to combat increasing electronic fraud in the country.

    Meme said finger vein biometrics becomes the most suitable selection to prevent higher-value fraud and protect billions to trillions in real-time authentication.

    He said this during a closed-door industry gathering in Lagos, attended by representatives from all major banks, law enforcement agencies, and the Central Bank of Nigeria (CBN).

    His words:” Job zero for all IT professionals is security. The advent of AI renders many passwords, pins, and tokens obsolete, and there’s an alarming rise of insider fraud. We constantly seek what we call ‘proof of life’ – a real human being, alive in real-time, that can present a digital audit footprint.

    Read Also: FG targets 90% energy cost savings for bus drivers with CNG vehicles

    “Fingerprint technology is good for basic, low-risk approvals. However, where you require the safest biometric performance to combat higher-value fraud and protect billions to trillions in real-time authentication, finger vein biometrics becomes the most suitable selection.”

    He added that the advanced biometric authentication technology was developed by Japanese technology giant Hitachi.

    Meme said: “The technology has already been successfully implemented by major international financial institutions, including HSBC, Citibank Japan, Barclays Bank in the UK, and Natixis in France. Barclays Bank, for example, has used finger vein technology to protect all business corporate account holders for over a decade and is now implementing its second-generation version of the platform.

  • Supervisor jailed two years for N11.234 million fraud

    Supervisor jailed two years for N11.234 million fraud

    Justice Olubunmi Abike-Fadipe of an Ikeja Special Offences Court  yesterday sentenced a supervisor at the Hajj and cargo terminal gate of the Murtala Mohammed International Airport, Lagos, Muhammed Idris to two years imprisonment for making false returns and corrupt self-advantage to the tune of N11,234,000.

    Justice Abike-Fadipe sentenced the convict to one year imprisonment on each of the two count charge brought against him by the  Independent Corrupt Practices and Other Related Offences Commission (ICPC).

    Idris was however fined  N1million on each of the count  in lieu of a fine of N1,000,000 for both counts. The sentences are to run concurrently.

    In addition, the defendant is required to be of good behavior and enter a bond with the registry of the High Court in the sum of Two Million Naira (N2,000,000).

    Read Also: Electoral Fraud: Northern groups applaud Tinubu, INEC over dismissal of three RECs

    Justice Abike-Fadipe said failure to comply with these terms will result in a further imprisonment of ten years.

    During trial, ICPC revealed how the accused collected missing monies in the course of his work but could not account for them.

    In the two-count charge, ICPC counsel, Yvonne Williams-Mbata, led evidence before the court on how  investigation uncovered a total loss of N11,234,000 under the defendant’s supervision and watch between February 2001 and April 2021.

    His offence is contrary to Sections 26(1)(b) and Section 25(1) of the Corrupt Practices and Other Related Offences Act, 2000.

  • Woman, 44, docked for alleged N34.2m fraud

    Woman, 44, docked for alleged N34.2m fraud

    A 44-year-old woman, Oluwabukola Ajayi, yesterday appeared before an Iyaganku Chief Magistrates’ Court for allegedly obtaining N34.2million under false pretences.

    The defendant of undisclosed address is standing trial on a three-count charge of conspiracy, fraud and stealing.

    The prosecutor, Inspector Adenike Adeyemi, told the court that the defendant and others at large committed the offences on September 4, about 2.00 p.m. at NTC Road, Ibadan.

    Read Also: Ex-bank manager jailed for $46,900 fraud

    She said the defendant fraudulently obtained N34.2 million from Sunshine International School, to supply gadgets to the school, but failed to do so.

    Adeyemi said the defendant converted the money to her own use.

    She said the offences contravened Sections 390 (9), 419 and 516 of the Criminal Code, Laws of Oyo State, 2000.

    The defendant, however, pleaded not guilty to the charge.

    The Magistrate, Mr M. Mudashiru, admitted her to bail of N10 million with two sureties.

  • Couple jailed 10 years for N52m fraud

    Couple jailed 10 years for N52m fraud

    The Ikeja Special Offences Court yesterday sentenced Harry Uyanwanne and wife, Oluwakemi Odemuyiwa (a.k.a Kristein) to 10 years’ imprisonment for conspiracy and theft of N52 million.

    Convicted alongside the couple was their church, Temple International Church, which the judge ordered closed.

    The judge, Justice Mojisola Dada, handed down the sentence after convicting the couple of a seven-count charge offence brought against them by the Economic and Financial Crimes Commission (EFCC), Lagos Zonal Directorate.

    The couple were first arraigned before the court on February 25, 2020.

    Read Also: Tinubu’s administration committed to development of area councils – Wike

    They pleaded not guilty, and a trial started in the matter.

    The prosecution, led by EFCC counsel Babatunde Sonoiki called five witnesses while the defence counsel two.

    One of the counts stated that Odemuyiwa and their church, in March 2016 in Lagos, converted N10 million, property of the late Mrs. Janet Odemuyiwa Adeola.

    Another count stated that  in March 2016 in Lagos allegedly sold the property at Plot 32, Block 9, Magodo Residential Scheme 1, Ikeja Local Government to one Mr. Kingsley Atere for N42 million on the false presentation that he was authorised to do so by the owner, the late Mrs. Adeola.

  • ‘Nigeria records 50% rise in fraud-related losses’

    ‘Nigeria records 50% rise in fraud-related losses’

    • Digital fraud incidents surge 100%, says FITC

    Nigeria has seen a 50 per cent increase in fraud-related financial losses and a 100 per cent surge in digital fraud incidents between first and third quarters of this year, according to the Financial Institutions Training Centre (FITC) latest Fraud Risk Report.

    According to the report, fraud cases have escalated across all platforms, with the rise of digital transactions further amplifying the risks.

    Financial institutions in Nigeria suffered a significant hit due to the growing sophistication of cyber fraud, identity theft, and insider collusion.

    The data was released during the FITC Risk Roundtable with: “Financial System Stability, Leveraging AI for Financial Fraud Detection and Regulations” as theme.

    FITC Managing Director/CEO, Chizor Malize emphasized the role of emerging technologies like artificial intelligence (AI) in combating the rise of cyber threats and digital risks, which have been exacerbated by advancements in technology.

    She highlighted FITC’s proactive approach in providing industry insights and fostering collaboration among stakeholders to address these challenges.

    “As the Fraud Risk Report underscores, there is an urgent need for leveraging AI to mitigate risks and bolster the stability of the financial system. FITC has been pivotal in bringing together industry leaders, regulators, and operators to develop AI-driven cybersecurity frameworks and predictive tools. By integrating AI into our training programs and risk simulations, we empower organizations to anticipate, mitigate, and manage risks effectively. These efforts not only restore consumer confidence but also promote financial inclusion, aligning with the Central Bank of Nigeria’s objectives to strengthen the financial ecosystem,” she said.

    Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan acknowledged the growing challenge of financial fraud in various forms, including payment fraud, insider fraud, account takeovers, identity theft, money laundering, and fraudulent transactions.

    Represented by Director Enterprise Risk Management at NDIC, Amal Haruna, the NDIC boss said: “Financial fraud is a significant global challenge that has led to financial losses, reputational damage, legal consequences, and financial system instability.”

    He emphasized the growing vulnerabilities in the financial sector.

    “There has been an increase in exposure to fraud, cyber-attacks, system failures, and other technological disruptions that could significantly impact Nigerian banking institutions and the global economy.” In conclusion he stated, “We will continue to encourage and support financial institutions in anticipating emerging risks and threats, while designing and implementing robust defenses to counter the rising fraud threats. AI holds the potential to revolutionize fraud detection and enhance the sustainability and resilience of our financial institutions. However, its implementation must be approached with caution, collaboration, and a commitment to ethical principles,” he said.

    Managing Director/CEO Pattison Consulting Limited, Pattison Boleigha, advocated for the wider adoption of AI tools and software to counter financial fraud. He urged regulators to be trained on these technologies while calling for increased consumer awareness and collaboration between consumers, operators, and regulators to combat fraud effectively.

    Read Also: Yahaya Bello gets Dec 10 date for trial in N110b fraud charge

    Group Chief Information Security Officer of Access Bank, Mrs. Favour Femi-Oyewole, also highlighted the need for embedded security in the financial sector due to consumers’ exposure to diverse APIs and multiple digital footprints. She called for broad-based implementation of machine learning to address the growing financial challenges and avert potential risks.

    Founder and CEO of Shreem Growth Partners, Ms. Aarti Samani, issued a stark warning about the increasing use of identity verification manipulation and deepfake technology by fraudsters. She emphasized the need for AI-powered tools to enhance fraud detection and train financial workers to spot both online and offline forms of fraud more effectively.

     In a similar vein, CEO of Scuriti Nigeria Limited, Ms. Samira Nwaturuocha, pointed out the complexity in risk management faced by financial operators and regulators. She called for the application of AI to predict and forecast dangers associated with human behavior and systemic vulnerabilities in the financial sector.

     The FITC Risk Round Table attracted a diverse audience of stakeholders from across five continents, including representatives from the financial services industry, regulators, technology experts, and other critical players in the fight against fraud and financial crime. Attendees joined both physically and virtually, underscoring the global significance of the discussions on mitigating the ever-evolving threats posed by fraud and cybercrime.

    The convergence of such high-level stakeholders emphasizes the urgency and importance of finding innovative, technology-driven solutions to safeguard the financial services sector, not just in Nigeria, but globally.

  • ‘We should partner against fraud’

    ‘We should partner against fraud’

    Managing Director of PalmPay, Chika Nwosu, has stressed the need for partnership to combat the menace of fraudsters as virtual transactions take firmer root in the country.

    Speaking on the company’s plan to commemorate the upcoming International Anti-Fraud Awareness Week, he said PalmPay is launching a series of community-focused initiatives to educate the public on fraud prevention and digital security.

    Anti-Fraud Officer at PalmPay, Adenekan Oluwatosin, said: ““As digital finance becomes more integral to everyday life, it’s crucial to stay vigilant and informed about potential risks.

     “Our Anti-Fraud Awareness Week reaffirms our commitment to proactive security measures and financial literacy.

    “At PalmPay, we are deeply committed to safeguarding our users from fraud by providing the tools and knowledge they need to protect themselves,”

    Also Nwosu said: “This initiative aligns with PalmPay’s mission to foster a secure and trustworthy financial landscape for Nigerians.

    We believe that collaboration with the public and industry stakeholders is vital to tackle fraud effectively.”

    PalmPay encourages the public to participate in this awareness walk to stand against fraud, learn essential self-protection strategies, and contribute to building a safer, more secure digital financial landscape for all Nigerians.

    Read Also: Court sentences union leader to 21 years imprisonment for N43.5m fraud

    The highlight of the initiative is a community walk with focus on: “United Against Fraud: Building a Safer Future” scheduled to take place across Lagos on November 22, 2024.

    This walk will gather key stakeholders from various sectors, PalmPay staff, and members of the public, reinforcing a collective commitment to a safer digital finance ecosystem in Nigeria.

    The walk will commence at designated PalmPay offices, moving towards the vibrant Ikeja tech hub, Computer village. Along the route, participants will distribute informative materials and engage with local residents and passersby, sharing tips on fraud prevention and encouraging safe digital practices. The event is open to all who are interested in standing against fraud and learning about ways to protect themselves in today’s digital landscape.

    Fraud continues to be a significant challenge within Nigeria’s growing digital financial ecosystem.

    Data has shown a staggering increase in fraud related cases, making it imperative for both businesses and consumers to be proactive in safeguarding themselves.

    “PalmPay, committed to promoting a secure and trustworthy digital finance landscape, will be spearheading an awareness campaign throughout Anti-Fraud Awareness Week to support financial literacy among its customers. The goal is to encourage its users to adopt safe digital practices, such as setting strong passwords, recognizing phishing attempts, and reporting any suspicious activity promptly,” the company said.

  • Alleged N2b fraud: Court dismisses TSTV CEO Echefu’s suit to stop trial

    Alleged N2b fraud: Court dismisses TSTV CEO Echefu’s suit to stop trial

    A Federal High Court in Abuja has dismissed a suit by the Managing Director and Chief Executive Officer of the Telcom Satellite Television Service (TSTV), Dr Bright Echefu, with which he had sought to stop the Inspector General of Police (IGP) from investigating the allegation of N2bn fraud against him.

    A former Minister of Special Duties, Kabiru Turaki (SAN) had, in a petition to the police, alleged among others , that his N2bn investment in TSTV had been fraudulently diverted.

    Upon being invited by the police for questioning, Echefu filed the suit marked: FHC/ABJ/CS/234/2024, praying that the IGP and his agents be restrained from conducting investigation into the case.

    It was Echefu’s contention that the ex-Minister’s N2bn investment was a civil transaction and the police have no power under any known laws to investigate such transactions.

    He argued that the police cannot act as debt recovery agent for the normal complainant (Turaki).

    In his judgment on Monday, Justice Inyang Ekwo held that the suit by Echefu was frivolous and lacking in merit.

    Justice Ekwo held that it was wrong of the plaintiff to seek the court’s protection from being investigated over a petition against him on alleged stealing and misappropriation of N2bn investment in TSTV.

    The judge was of the view that the allegations against Echefu related to stealing and misappropriating N2bn investment and not debt recovery drive as he erroneously claimed.

    He held that the plaintiff failed to establish his claim that the N2b was in relation to civil transaction when the petition before the police alleged stealing and misappropriation of the fund invested in TSTV for its expansion.

    Justice Ekwo faulted Echefu argument that the police have no power to investigate such petition against him.

    Read Also: Nigeria needs $410b for energy transition, says ECN

    He added that when a petition has the colour of stealing and misappropriating, the police are empowered under Section 4 of Police Act to inquire into such allegations.

    The judge said: “The plaintiff (Echefu) has not denied being given the several sums of money by the 4th defendant (Kabiru Turaki) as investment in the companies mentioned in the averments in this case.

    ” The case made against the plaintiff (Echefu) is that of stealing and misappropriation. For the plaintiff to assert and actually sustain the assertion that this matter is contractual and that police cannot be involved, the onus is on the plaintiff to demonstrate with concrete evidence that there was no stealing and misappropriation.

    “This is so because the mere claim that a relationship between the parties was and is contractual in nature is not a magic wand that will indiscriminately shield a person from being investigated on the allegations of criminal act arising from civil transaction”.

    “To allow a plaintiff to coast home with the treasures of his loot on the grounds that such was contractual matter, will enhance a judicial victory for the undeserved.

    “A citizen who is a victim of any act of crime, has right to make a report of same to the police and in the Nigerian system of administration of justice, when a crime is committed, it is the Nigerian police that moves in to investigate it.

    “On the whole, the plaintiff has not given me any cogent ground to interfere in the exercise of the statutory power of the 1st and 2nd defendants (Police) on the petition by the 4th defendant (Turaki) that his investment has been stolen and misappropriated by the plaintiff.

    “On this ground, I find that this action lacks merit and ought to be dismissed. I therefore make an order dismissing this case on those grounds,” he said.

    Listed as defendants in the suit are the Nigeria Police Force, the IGP, the DIG Force Investigation Bureau, Turaki and the Attorney General of the Federation (AGF), who name the judge struck in the earlier part of the judgment as not being a necessary party.

  • Travel agent docked over alleged visa fraud

    Travel agent docked over alleged visa fraud

     A 42-year-old Travel Agent, Victor Enike, was on Wednesday arraigned before a Grade ‘A’ Customary Court, Ibadan, over an alleged visa fraud.

    Enike was charged with obtaining money under false pretence and stealing, to which he pleaded not guilty.

    The Prosecutor, Mr Philip Amusan told the court that the defendant committed the offences on Jan. 3, at about 3.00 p.m, at Ijokodo area of Ibadan.

    Read Also: Lagos task force arrests 54 touts, illegal ticket operators

    Amusan said the defendant obtained the sum of N870, 000 from one Kolade Oladokun, to procure a Canada visa for him, but failed to do so.

    He said the defendant, instead converted the money to his personal use and committed offence contrary to Sections 419 and 390(9) of the Criminal Laws of Oyo State, 2000.

    The Court president, Mrs Sukurat Yusuf granted the defendant bail in the sum of N750, 000 with two reliable sureties in like sum.

    She adjourned the case until Oct. 18, for hearing.

    (NAN)

  • Ex-bank manager re-arraigned over alleged N179.4m fraud

    Ex-bank manager re-arraigned over alleged N179.4m fraud

    A former bank manager, Fidelis Egueke, was yesterday re-arraigned for the third time before the Federal High Court in Lagos over AN alleged N179,498 million fraud.
    The Force Criminal Investigation Department (ForceCID) Alagbon, Ikoyi, re-arraigned him on a 16 count-amended charge.

    Egueke was docked before Justice Kehinde Ogundare, the third judge to adjudicate on the charge.
    The police alleged that the former bank manager conspired with others now at large to fraudulently remove N174.498 million from a company account domiciled in Guarantee Trust Bank Plc between May 14, 2010 and December 31, 2019.

    The prosecution alleged that the defendant and others now at large, at No. 2 Balogun Close, Ikoyi, Lagos, conspired and obtained by false pretence the sum of N350,000.00, from a company under the pretence of opening an account with GTBank.
    He was also alleged to have on December 10, 2018, fraudulently obtained N50million from the company under the pretence of using it to finance a fish supply business.

    Read Also: UPDATED: Court sends ex-Minister Mamman to prison over alleged N33.804bn fraud

    Egueke was also alleged to have, between May and December 2019, without authorisation, fraudulently converted N179,498 million in the company’s account domiciled in GTB Plc to his personal use.

    Prosecuting counsel Morufu Animashaun said the alleged offence contravened Sections 8(a), 1(1)(c) of the Advance Fee Fraud and Other Fraud Related Offences Act No. 14 of 2006 and punishable under Section 1(3) of the same Act, among others.

    The defendant pleaded not guilty to all the counts.

    Defence counsel, Tunde Adekoye (SAN) urged the court to allow his client to continue with the previous bail terms granted him by the previous judges.

    Egueke’s re-arraignment is due to the transfer of Justice Chuka Obiozor and Justice Tijani Garuba Ringim, who previously handled the case, to other divisions of the court.

    The former bank manager was first arraigned before Justice Obiozor in November 2020 on previous two amended charges of three and 14 counts of conspiracy, fraud, unlawful conversion, obtaining by false pretence, and unauthorized withdrawal.

    He was later e-arraigned before Justice Ringim on August 7, 2022, on the same counts charge after Justice Obiozor was transferred.

    Justice Ogundare adjourned till November 6 and 7 for trial.