The Economic and Financial Crimes Commission (EFCC) on Wednesday arraigned two businessmen, Fagite Oladipo and Raymond Akintayo, before the Federal High Court in Lagos over allegations that they fraudulently obtained and unlawfully converted N1.55 billion belonging to Ocean Lord Limited.
The defendants were arraigned alongside two companies, Cabota Power Company Limited and Cabota Group Limited, which the EFCC says were used to receive funds from Ocean Lord under the false claim that they held a valid licence to transact in foreign exchange.
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EFCC prosecutor Suleiman Suleiman told the court that the commission had filed eight charges accusing the defendants of fraud, conspiracy and unlawful conversion of funds.
The defendants pleaded not guilty to all charges when read to them.
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According to the EFCC, the defendants collected N1.55 billion from Ocean Lord Limited between 2 and 15 May after allegedly misrepresenting that they were licensed to conduct foreign-exchange transactions.
The commission said the funds were later diverted for their personal use.
Bail application
Defence lawyer Richard Ahonaruogho, a Senior Advocate of Nigeria, announced that he had filed and served a bail application on the prosecution.
The EFCC prosecutor acknowledged service but asked for time to respond because the application had only just reached him.
When Mr Ahonaruogho sought to make an oral bail application, the court declined.
He then urged the court to remand the defendants in EFCC custody rather than in prison pending the determination of their formal bail request.
The judge Daniel Osiagor adjourned the case until 11 December, for the hearing of the bail application and the start of the trial.
Charges
The charges accused the defendants of conspiring to obtain money under false pretences, an offence that violates Section 8 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006.
It also alleges they obtained N1.55 billion from Ocean Lord under false pretences, contrary to Section 1(3) of the same Act.
The EFCC further claims that on 6 May, the defendants converted four sums—N85 million, N150 million, N208 million and N121 million—belonging to Ocean Lord Limited, actions that violate Section 383 and are punishable under Section 390 of the Criminal Code Act.
The commission also alleges that the defendants operated a bureau de change without a licence from the Central Bank of Nigeria (CBN), in violation of Section 57(1) of the Banks and Other Financial Institutions Act, 2020 (BOFIA), and punishable under Section 57(5)(b).
The EFCC maintains that the defendants acted together to deceive Ocean Lord Limited into releasing more than N1.5 billion for foreign-exchange dealings they knew they were not licensed to conduct.
READ ALSO: $4.5bn Fraud Trial: Emefiele’s co-defendant not coerced to write statements – EFCC witness
Recent precedents
The case against Messrs Oladipo and Akintayo comes at a time of intensified enforcement by the EFCC against unlicensed forex dealers and illicit BDC operators.
In May 2024, the commission arrested 13 suspected fake bureau-de-change (BDC) operators in Lagos for allegedly conducting foreign-exchange business without a licence.
In one of the earliest convictions this year, a Lagos court jailed an unlicensed BDC operator, Faruk Umar, for six months (or ordered a fine as an alternative) after he pleaded guilty to conducting forex trading without CBN authorisation.
More recently, in August,the EFCC announced the arrest of 12 suspected illegal BDC operators in Lagos following credible intelligence and surveillance.
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