Otudeko, ex-First Bank CEO Onasanya, others sued for N12.3 billion advanced fee fraud

A former chair of FBN Holdings Plc, Oba Otudeko, has been sued for advanced fee fraud in the sum of N12.3 billion in an alleged conspiracy that also involved Bisi Onasanya, an ex-CEO of the financial institution, Soji Akintayo, a former director of Honeywell Flour Group, and Anchorage Leisure Limited.

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Mr Otudeko owns majority stake in Honeywell Flour Mills, which is listed on the Nigerian Exchange in Lagos.

The lawsuit, which has the Federal Republic of Nigeria as its plaintiff, centres on a 13-count charge against Mr Otudeko, 12 against Mr Onasanya and ten each against Mr Akintayo and Anchorage Leisure, according to court papers seen by PREMIUM TIMES on Thursday.

According to the details of the suit filed at the Federal High Court of Nigeria, Lagos, the four defendants connived among themselves to secure a N12.3 billion credit facilities from First Bank between 2013 and 2014 under the pretence that V-Tech Dynamic Links Limited and Stallion Nigeria Limited applied for the loans.

The four also in November 2013 took N5.2 billion “from First bank Limited on the pretence that the said sum represented credit facilities applied for by V-TECH DYNAMIC LINKS LIMITED which representation you know to be false,” the document went further to say.

Mr Otudeko, who has been in a tussle for months with Femi Otedola, the current chair of FBN Holdings over the top ownership position of FBN Holdings, wrote the board of the lender in the first week of January, asking that his rival be removed and he be appointed chairman.

Both men hold the biggest stakes in the group. Mr Otudeko held the chairmanship of FBN Holdings directors’ board from 2012 until he was dismissed in 2021 by the CBN for breach of corporate governance rules.

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The three men and Anchorage Leisure are also facing the accusation of taking the sum of N6.2 billion, being proceeds of the alleged criminal act, for personal use.

One of the the uncanny accusations that the plaintiff has made is that the four allegedly acquired Honeywell Flour Mills Plc in late 2013 for N1.5 billion with the ill-gotten proceeds of unlawful activities obtained under false pretence.

The sum of N500 million of the controversial loan facilities was also converted for the use of Honeywell Flour Mills, the prosecution argued.

The four of them, the court paper further said, colluded to “commit an offence to wit: uttering a forged document – titled “Letter of Application” with intent that it may be used by the First Bank in the belief that the said document is genuine and emanated from V-Tech Links Dynamic Limited.”

They also face the allegation of making false document titled “authorisation to issue investment certificate to First Bank” with the intent that it may be used by the lender uder the guise that the document is genuine and emanated from V-Tech Links Dynamic Limited.

Both Mr Otudeko and Mr Onasanya were said to procure one Abiodun Olatunji and Raymond Eze to move N6.2 billion from “proceeds of unlawful activities” to an account of Stallion Nigeria domiciled with First BANK.

The duo also were alleged to procure Mr Olatunji and Eze to transfer N2.1 billion from an account of Stallion Nigeria Limited with First Bank to Emmerado Logistics Limited’s account with First City Monument Bank.

“OBA OTUDEKO on or about 3rd day of September, 2013 in Lagos, within the jurisdiction of this Honourable Court whilst being the Chairman of First bank Plc indirectly had personal interest in a loan facility sought by V Tech Dynamics Links Limited in the sum of N6,150,000,000 (Six Billion, One Hundred and Fifty Million Naira Only), which interest was not declared to the bank,” the document added.