Ecobank Loses $42millon To Fraudulent Activities

A federal high court sitting in Lagos has dismissed the applications filed by three foreigners to quash a bench warrant issued for their arrest and extradition over a $42.48 million fraud allegations.

The foreigners are two Indian nationals, Prem Garg and Devashish Garg and a Briton, Marcus Wade, chairman of Wilben Trade Limited.

On October 7, 2022, Ecobank petitioned the department of public prosecutions (DPP) over $42,485,900 fraud allegations against the foreigners and their companies; Wilben Trade Limited, Dubai, and Agrico Agbe Limited.

The trio were charged before the court by the office of the attorney-general of the federation (AGF) for allegedly defrauding Ecobank Plc of $42,485,900 million.

They had requested a loan facility from Ecobank for the importation of rice in 2015.

In the charge marked FHC/L/562C/2022, counts one and four against the defendants showed that the plaintiffs had collected money from the bank but never showed up.

“That you, Prem Garg, Devashish Garg both of Iand ndian nationality, Agrico Agbe Limited (a company registered in Nigeria), Wilben Trade Limited, Dubai (a company registered in the United Arab Emirates, Dubai), Marcus Wade (Chairman of Wilben Trade Ltd, Dubai) of British nationality, sometime in the month of May and September, 2015 at Ecobank Plc, Lagos within the Jurisdiction of this honourable court conspired between yourselves to commit an offence thereby committed an offence punishable under Section 422 of the Criminal Code Act, Cap C38 Laws of the Federation of Nigeria, 2004,” the charge reads.

“That you, Prem Garg, Devashish Garg both of Indian nationality, Agrico Agbe Limited (a company registered in Nigeria), Wilben Trade Limited, Dubai (a company registered in the United Arab Emirates, Dubai), Marcus Wade (Chairman of Wilben Trade Ltd, Dubai) of British nationality, sometime in the month of May and September, 2015 at Eco Bank Plc. Lagos thin the Jurisdiction of this Honourable Court conspired between yourselves to commit an offence to wit: Cheating in that you caused Ecobank Plc to deliver monies to the tune of $42,485,900 which was intended by contract for the purchase and import into Nigeria India Parboiled rice but never utilised the sum of money for the contract and thereby committed an offence punishable under Section 421 of the Criminal Code Act, Cap, C38 Laws of the Federation of Nigeria, 2004.”

However, while the charge is pending, the defendants did not appear in court to take their pleas on the charges.

The development made the office AGF, through its lawyer, Pius Akutah, to file applications before the court for issuance of a bench warrant and possible extradition against them.

The application was granted by Akintayo Aluko, the presiding judge in November 2023.

But the defendants, through their lawyers, Dele Belgore and Dada Awosika, filed applications to quash the orders for their arrest and extradition.

‘NO MERIT IN APPLICATION FILED’

Unsatisfied with the application, Kehinde Bode-Ayeni, the lawyer representing the AGF countered the application.

Bode-Ayeni took over the case file from Akutah who is now the executive secretary and chief executive officer (CEO) of Nigerian Shippers Council.

Delivering his ruling on Monday, Aluko said the proceedings before the magistrate court in Delhi India, can not operate as a “stay in criminal proceedings” in Nigeria.

The judge said the matter is not “purely a criminal proceeding,” and that it is a proceeding in a Nigerian court as constituted by the Nigerian constitution.

Also, Aluko said an order of status quo granted by another court can not violate the criminal charge pending in this court.

He held that “there is no merit in the applications filed by the defendants”.

Aluko also held that the two applications “lack merit and same are dismissed”.

The judge, therefore, adjourned the case to October 24, for further proceedings.

On August 7, a statement circulated online alleged the Central Bank of Nigeria (CBN) is investigating Ecobank over claims of abusive proceedings and communications against Wilben Trade Limited and Wade.

However, CBN denied probing Ecobank.