Court convicts businessman of $247,390 fraud in Lagos

The Special Offences Court in Lagos State has convicted a businessman, Kingsley Obasi, of fraud involving $247,390.

In a judgement delivered Thursday, trial judge Mojisola Dada sentenced Mr Obasi to seven years’ imprisonment but with an option of N5 million fine after finding Mr Obasi and his company, Great King Parkson Industrial Company, guilty of stealing.

The Economic and Financial Crimes Commission (EFCC) had arraigned Mr Obasi and the company on 22 February 2023 on one count of stealing, contrary to Section 287(9)(b) of the Criminal Law of Lagos State, 2011.

According to the anti-graft agency, the defendants dishonestly converted proceeds from the sale of car batteries supplied by Vasworld Power Company Nigeria Limited.

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The charge stated that the defendants, sometime in 2021 in Lagos, converted $162,615, being the balance realised from the sale of batteries supplied to them “for sale and onward remittance” to the complainant company.

Mr Obasi, who represented the company during proceedings, pleaded not guilty, leading to a full trial.

During the trial, prosecution lawyer M. K. Bashir called two witnesses and tendered several documents admitted in evidence by the court.

The defendant also testified in his own defence.

In her judgement, Ms Dada held that the prosecution proved its case beyond reasonable doubt and consequently convicted the businessman and his company.

Defence lawyer Suleiman Etuzogie, in his allocutus, appealed to the court to temper justice with mercy, arguing that the convict had learned lessons about doing business in Nigeria.

The judge subsequently sentenced Mr Obasi to seven years imprisonment with an option of a N5 million fine.

The court also ordered him to make a restitution of the outstanding $247,390, described as proceeds from the sale of batteries belonging to Vasworld Power Company Nigeria Limited, through the EFCC.

In addition, the court ordered Great King Parkson Industrial Company to pay a N5 million fine and directed that the company be wound up, with its assets forfeited to the federal government.

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The EFCC said the case began after a petition by Vasworld Power Company Nigeria Limited alleging that Mr Obasi obtained goods by false pretence and diverted proceeds from their sale.

According to the commission, the petitioner claimed that Mr Obasi, who frequently travelled to China, approached the company to purchase custom-made batteries.

The batteries were reportedly shipped in the name of his company and received in Nigeria, but the proceeds from the sale of products worth about N150 million were allegedly not remitted to the supplier.

The conviction adds to a growing number of fraud-related prosecutions pursued by the EFCC before this judge who has increasingly imposed restitution, forfeiture and custodial penalties in financial crime cases.