EFCC re-arraigns Indian businessman over alleged N32 bn fraud
(Nigeria) A Nigerian-based Indian businessman, Patrick
Fernandez, has been re-arraigned before a Federal High Court in Lagos, over alleged
N32 billion fraud.
The defendant was re-arraigned on Tuesday before Justice
Ishola Olatoregun following the transfer of the previous trial judge, Justice
John Tsoho from the Lagos division.
He is being prosecuted by the Economic and Financial Crimes
Commission, EFCC.
When the case was mentioned, Mr Tayo Olukotun, announced
appearance for the prosecution while Mr Solo Aguma, SAN, announced his
appearance for the defendant.
The 56-count charge was then read over to the defendant to
which he pleaded not guilty.
In a short ruling on the bail application, Justice
Olatoregun held that the defendant should continue with the earlier bail
granted by the previous judge.
She, however, urged his counsel to make fresh
recommendations as to the sureties to be provided.
Judge adjourned the case to June 20, 21 and 22 for trial and
warned the counsels to exhibit diligence in prosecution.
Olatoregun stressed that the matter would be adjourned from
day to day, and threatened to strike out the case if the prosecution counsel
showed any sign of unseriousness.
Fernandez was charged alongside his companies, on a 56-count
bordering on the alleged offence.
He was alleged to have committed fraud against various
commercial banks in Nigeria to the tune of about N32 billion.
In his testimony at the last hearing before the previous
judge, Mr Bashir Abdullahi, a former investigator with the EFCC, revealed how
the alleged fraud was uncovered.
He said that the commission learnt of the fraud when one of
the banks contacted the agency's financial Intelligence Unit.
The witness said that in July 2008, he was assigned to
investigate the case of suspicious financial activities involving Fernandez and
his companies.
According to him, his investigations revealed high volume
transactions from one account to another, all of which he said were fraudulent.
He said that the commission's findings was that the
defendant was involved in alleged cheque-kitting and round tripping which he
said was also termed “Lazy Susan", a business model.
He said that "Lazy Susan" involves members of a
business group transferring money from one sister company to another without
selling any commodity, using money obtained from banks as loans.
The transactions, he said, involved the use of
"suspended cheques which did not go through the clearing house.’’
The offence contravenes the provisions of Sections 314 of
the Criminal Code Laws of the Federation, 2004.
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