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Ex Staffer Exposes N11b Fraud At Fidelity Bank

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Mr Frank Ogboko, a former staffer in Fidelity bank’s Internal Audit and Cost Control Unit just made very grave revelations in a petition. Along with docuements to back his assertions.
The former Fidelity Bank employee, Mr. Ogboko, a Chartered Accountant and a member of ICAN since 1990 has let to light discrepancies and fraud involving two companies, Oil Recovery and Environmental Services Limited and ERES N.V limited of depositors fund totaling N11billion, culminating from huge debit balances from rogue loans and capital market fraudulent activities involving both companies and the management of Fidelity Bank.According to Ogboko, who was appointed as a staff of Fidelity Bank on 1st November 2002,

he noticed the discrepancy in the balance sheet and notified his immediate boss Mr. Boye Ogunbolade, saying that the actions of the bank was not in line the banks’ corporate and financial guidelines, but was persuaded to drop the matter and was eventually sacked.
He said. “Why my appointment was terminated was that I discovered a huge fraud perpetrated by officers of Fidelity bank. The officers involved are; Mr. Reginald Ihejiahi ( the former M.D) Chief Willie Obiano ( The Current Governor of Anambra State) Mr. Ikemefuna Mbagwu, Mr. Sam Obijiaku and Mr. Boye Ogunbolade.
“These are the officers involved in the fraud.
“I alerted Mr. Ogunbolade, my immediate boss that what the bank is doing is not good, that we are not making provisions in line with the provisional guidelines, and that is the N6.3 billion, and that we committed capital market fraud which is very very bad.
“He took offence and reported the matter to the M.D (Mr. Ihejiahi). They removed me from the unit, took me to the Corporate Services Unit.
“Right from the time the two companies took the loan, and they’ve taken subsequent loan from the bank, it beholds in the directors of the company to pay back the loans they took, but they did not and frantic effort was made by the bank to recover the loans.
“The bank statement relating to the accounts of both companies was above N3 billion each for the companies as the debit balance as at 31st October 2005. The two account balances were not cleared by the directors of the company because if the directors paid off the loan, they will give us the instruments used in paying back the loan.
They cannot pay it by cash. The bank wiped it off the system.
“The other case of the capital market fraud. What they did was that they will take money from the vault of Fidelity Bank. Vaults in various branches nationwide.
“They have regional officers in charge. They direct the regional officers to source money from their regions to pay into named accounts.
“These monies are then used by the beneficiaries to buy Fidelity bank shares. This implies that the board bought the shares by themselves. This they use in financing the initial public offer that they went for and then they say the shares have been oversubscribed.
“No, it is the depositors’ money that they used in buying the shares.
“And then they created loan accounts for such individuals. Those loan accounts are then converted into loans without appraisals and without recouping the funds.
“You now find out that the beneficiaries of those loans might not be able to pay back the loans because of the share prices explosion which brings the share prices down. The account beneficiaries still carry the loans the bank being what they are, know how to manage it. Those loans are created for people who did not apply for loans.
“In this case, the Central Bank of Nigeria did not go for investigations.
“This is how the capital market fraud was of N4.7 billion and the falsification of account to the tune of N6.3 billion totaling N11 Billion came about.
“This is what Chief Willie Obiano and his group including Mr. Peter Obi (the former governor of Anambra State) did, because Obi was the chairman then. It was a big fraud they committed.
“The two companies were in existence. I have documents showing their correspondence with Fidelity Bank that they existed.
“They can float a company; make A B or C as directors. Things can happen in Nigeria. The person will be coming to take money and give it to them.
“At the end of it all they know that, oh we cannot payback this money, they will just remove it gently from the system.
“I reported this matter to the then Inspector General of Police, Hafiz Ringim. I sat down one on one with him, I gave him copies of the documents. I reported this matter to the EFCC, I gave them copies, I have my own copies and nothing happened.
“Even when I came out, I had discussions with the office of the NSA, this matter went to them. They did investigations. They said Francis, what you did was correct; the bank actually did the fraud. The fraud was actually committed, they investigated and it is true.
“Nigeria and her corruption and settlement palaver, I don’t know how they were settling. The IG of police would receive a document and nothing happened. EFCC would receive a document and nothing happened.
“When the whole thing happened it was Tafida that was there at the EFCC, I am surprised the way things are happening in Nigeria.
“The names of the Officers of the bank involved were mentioned in the petitions I sent to the EFCC, Reginald Ihejiahi, Chief Willie Obiano, Sam Obijiaku, Ikemefuna Mbagwu, and Boye Ogunbolade. These were the key officers that were in charge of the affairs of the bank.
“The bank is an entity. They cannot say they were not aware of what was happened at the bank because we gave then reports every day.
“Because of this, there have been several threats to my life. I don’t stay in my house until this case is over. For them if I am no longer alive, then this case is over because nobody will challenge them. I am a shareholder of the bank and also a former staff of the bank.
“I spent nearly one year in Ikoyi Prisons but was later granted bail in the High Court by Justice Kehinde Johnson. Since I came out, for the bank to go and prosecute this matter now, they refused going because they know that with the documents I have they will close down the bank. The N4.7 billion capital market fraud and N6.3 billion falsification of account.
“Chief Willie Obiano was there, Mr. Peter Obi was the chairman when all these was going on, and the money they used in paying to the account of Mr. Peter Obi’s company, Next International, I have documents relating to that.
“Since that thing was done, even though I was released on bail by the High court, they sent assassins to my house to look for me, but thank God I was not in the house that day. After that I had to relocate.”

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Business

Depositors Panic Over N40B Fraud At First Bank

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Some depositors of the Olusegun Alebiosu led First Bank of Nigeria Limited are stiff worried about the N40 billion fraud that rocked the bank.

 

They are perturbed that the staggering amount involved in the fraud might affect their deposits, we gathered that some of them have been trooping to the bank to withdraw their money or transfer to another bank.

 

The staff of the old generation bank, Tijani Muiz Adeyinka, who perpetrated the fraud and his wife have escaped according to findings.

 

 

When officials of the bank sent security men to arrest Adeyinka, they could not locate his whereabout, so they stormed his wife’s office but could not arrest her because she escaped through the back door of her office.

 

First Bank, which has a market capitalisation of ₦829 billion has begun legal action to recover “huge sums of money” allegedly diverted by Adeyinka, an employee at a head office team in Iganmu, Lagos.

 

Adeyinka allegedly diverted those funds to 98 bank accounts classified as first beneficiaries, including his wife’s account.

 

 

The bank reported the incident to the Nigerian Police Force on March 25, 2024, and obtained three court orders between April 4–8, 2024 to block hundreds of bank accounts believed to have received the stolen funds.

 

Gathered that while the initial amount discovered to be diverted was around ₦12 billion, it now stands at around ₦40 billion ($29 million).

 

Adeyinka, a manager on the electronic products team at First Bank, allegedly authorised the process of reversals for customers.

 

Adeyinka controlled an account with which he processed those reversals and could credit merchant accounts.

 

The banker allegedly used that authority to instead credit customer reversal requests to a merchant he controlled. As the last line of authorisation on the team, he allegedly did not need any further approvals, it allowed him to carry on diverting customer funds for almost two years without detection.

 

His scheme was eventually discovered when a customer made a complaint that was eventually escalated to the bank’s internal control unit. The control unit discovered several suspicious transactions and reported to the police.

 

“We hereby bring to your notice the discovery of fraudulent transactions into various transactions within and outside the bank and request your good offices to set up the machinery of investigation in place with a view to unravel the circumstances surrounding the said fraud and get the culprits arrested to face the wrath of the law,” read a letter dated May 10, 2024, from First bank to the Lagos State Commissioner of Police.

 

“I discovered that one Muiz Tijani Adeyinka, a former staff of First Bank was involved in the nefarious posting of fraudulent transactions,” read a statement from the investigating Police officer in charge of the case signed March 26, 2024.

 

“It was discovered that he made some fraudulent transactions to his wife’s account number (name withheld) domiciled with Zenith Bank, which in turn transferred to other beneficiaries totaling thirty-four accounts which also gave birth to second beneficiaries domiciled with other banks totaling 1,190 accounts,” the statement added.

 

 

First Bank obtained an order on April 8 to block the bank accounts of the first and second beneficiaries of the illegally obtained funds from a Federal High Court in Lagos. The bank also obtained additional orders dated April 8 and May 5 from a Jalingo and a Lagos high court to block additional accounts believed to be involved in the incident.

 

One first beneficiary account reportedly used some of the stolen funds to buy the stablecoin USDT from several crypto traders detailing their bank accounts.

 

 

Those traders claimed their only involvement was selling USDT and denied knowing the funds they received were proceeds of fraud. They have now been drawn into a legal battle with the bank with restrictions on their accounts at the time of this report.

 

Efforts to make Chinwe Bode-Akinwade of Corporate Communications department of First Bank, react to the development met a brickwall as she was yet to respond to our inquiry as at time of filing this report.

 

Stakeholder have been reacting since the fraud was reported in the media. They took to their X handle to react to the development.

 

 

In his comment on X, one Dr A. TuruMbe said the revelation brought to his memory a case 20 years ago when he worked with a bank on Ahmadu Bello way in Victoria Island, Lagos.

 

Another user of X claimed the money that was stolen “is from dispense error, it gets moved by the end of work day and transaction deleted. It has gone for about two years, what gave him away was the issue of submarine cable that affected telcos and banksd in April. The transaction piled up for those days.”

 

According to another commentator on X, “banks and other financial institutions need to have elevated risk management and fraud detection systems in place. The downside of evolving technology is that crooks will always want to exploit any vulnerability to their advantage.”

There have also been questions as to why this fraud went on for as long as it did. According to Nkwuda Chinedu, “there are much obvious questions begging for answers – is their system not automated? Is there no Maker-Checker in place as known traditionally in banking? Has the staff no supervisor and no audit for the period?”

 

Other commentators have also asked to know how one staff can be left solely in charge of reversal funds where he would have unchecked access to move funds unchecked?

 

 

Mr Victor Frank in a comment on X, said, “the problem with the Nigerian government is evident in the banking sector. I cannot imagine how a whooping N44bn will be scattered around without triggering an alert.”

 

One bank customer on X said because the alleged culprit was stealing bank customer reversal, it was hard for the bank to detect and that this is why bank customers wait endlessly to have

their transfers reversed and their bank accounts credited.

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‘Seye Will Return To Ilesa’! The Interview That Lands Lamidi Auxilliary In Trouble

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To the dethroned Oyo State Park Management System boss, Lamidi Auxilliary, it was like a bad dream when he was paraded by the police and charged to court recently.

 

Papermacheonline can reveal that the accused, a former aide of Governor Seyi Makinde landed himself in trouble after granting an interview where he threatened another top aide of the governor, Seye Famojuro and promised to reveal more in another interview.

 

Just some hours after the interview, Auxilliary was arrested by the DSS in his home at Olodo, Ibadan before he was later paraded and charged to court for murder, armed robbery and illegal arms posession.

 

A source hinted papermacheonline that Auxilliary’s threat to reveal more was like a death knell, explaining that he was the head of Governor Makinde’s ‘protection team’ and his decision to start granting interviews on radio is unacceptable. Again, the person he threatened, Seye Famojuro is the closest person to Governor Makinde.

 

The source furthermore explained ‘are you aware he just left the UCH some months ago? He was hit and injured by a car when he went to buy drugs, he almost died! So, we all wondered how he could get so silly and start granting interviews. He is just an illiterate and there are so many evidence against him’. The source revealed.

 

In the interview he granted to Media personnel, Ajibola Akinyefa, in the Yoruba Language, the former PMS chairman said, “If he (Famojuro) is the governor or Seyi Makinde is, we will know. It is just a matter of time. Everybody will face the consequences of their actions. The people he chose to manage the park are cheating themselves.

 

hen asked if it was his hooliganism that led to his removal, Auxiliary queried how many people reported that he beat them to the police.

He further said that Seye would still return to Ijesha because Ibadan is not his homeland.

 

 

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lifestyle

Glad I Have One Less School Fees To Pay! Seyi Makinde Bares Thoughts At Daughter’s Graduation

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Oyo State Governor, Seyi Makinde is one happy man. The politician could not help but bare his mind during the graduation of his first child, Tobi from the Yale University.

 

The Governor on his official instagram handle claimed he is glad to have one less school fees to pay at the ceremony which was attended by friends and well wishers.

 

Makinde wished his beloved daughter the best as she embarks on a new chapter of life.

 

Spotted at the graduation ceremony was the Oyo State First Lady, Omini Makinde, lawmaker Stanley Olajide and a handful of friends and aides of the Governor.

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