Lawyer Drags First Bank Before CBN Over Allegation Of N550m Fraud


A civil society organisation, Centre For Socio and Economic Justice, has dragged First Bank of Nigetia before the Central Bank of Nigeria, CBN, over allegation of funds diversion to the tune of N550m.

The centre called on the CBN to revoke the license of First Bank of Nigeria for unsafe practices and adding customer's finds are supposed to be safe with the bank.

According to a letter dated May 29, 2024, the Director of the centre, Barrister U. I. Mohammed, said a customer of the Bank, Dr. Agbai Eke Agbai, who has been a dedicated and resourceful customer of the First Bank of Nigeria Ltd “First Bank” with Fixed Deposit Account numbers – 6924010002639 and 5021000788976 whose funds amount to the tune of ₦ 550,000,000.00 was illegally diverted, misappropriated and fraudulently taken by the bank.

A copy of the letter received at the Security Services Department of the CBN which was also sent to First Bank said a staff of the bank, Mrs. Shamlar Abosi, who is supposed to be the account officer of Dr Agbai, illegally tampered with her client's account.

Parts of the petition titled, "PETITION AGAINST FIRST BANK OF NIGERIA FOR FRAUD, DIVERSION AND MISAAPROPRIATION OF FUNDS BELONGING TO DR. AGBAI EKE AGBAI" read, "In 2014, Mrs. Shamlar Abosi, a staff of First Bank approached DR. AGBAI EKE AGBAI to deposit funds in First Bank for a Return on Investment, DR. AGBAI EKE AGBAI after listening to the advice of Mrs. Shamlar Abosi accepted to deposit funds in the bank for an agreed interest rate.

"Fixed Deposit Accounts were subsequently opened for DR. AGBAI EKE AGBAI with the above-mentioned account numbers. The sum of ₦ 300,000,000.00 (Three Hundred Million Naira) only was deposited in Account number-6924010002639 which took effect on the 21st day of February, 2018 with interest rate of 14.5% with 364 days tenor, and the sum of ₦250,000,000.00 (Two Hundred and Fifty Million Naira) only was deposited in Account Number -5021000788976 which took effect on the 19th day of October, 2018 with interest rate of 14.5% with 364days tenor.

"After the maturity date of the investment which is on the 20th of February, 2019 and 18th of October, 2019 respectively, In September, 2023, DR. AGBAI EKE AGBAI informed First Bank of his intention not to renew the investment and requested his money to be transferred to his saving Account domiciled with the bank with Account number-3079342444 immediately.

"Unfortunately, the money requested by DR. AGBAI EKE AGBAI to be transferred to his savings account has not been credited till date after numerous effort to remind the bank of its failure to carry out the request.

"It is also noteworthy and remarkable that Mrs. Shamlar Abosi who persuaded DR. AGBAI EKE AGBAI into investing in the Bank, who is also the account officer and business manager of the investment has failed to provide explanation regarding the money of DR. AGBAI EKE AGBAI."

Barrister Mohammed said it is without doubt that the funds deposited in the Fixed Deposit Account numbers – 6924010002639 and 5021000788976 by Dr. Agbai Eke Agbai has been criminally and fraudulently diverted by First Bank without his consent or notice.

He said after sending their agent and officer, Mrs. Shamlar Abosi to persuade him into investing in the bank, the Bank has failed to refund the money illegally taken from him despite the numerous pleas, warnings and notices.

"We urge the Central Bank of Nigeria to investigate the fraudulent activities enumerated above, refund the money stolen and illegal diverted by First Bank, and to invoke its powers bestowed on it under Section 12 of the Banks and other Financial Institutions Act, 2020 by revoking the license of First Bank of Nigeria for unsafe practices and other fraudulent dealings", the centre said.

COMRADES, I don't know why Nigerian banks do participate in financial fraud

First bank has been making headlines since yesterday. The magnitude of fraud going on in the banking sector is mind blowing. Their exorbitant and yahoo life styles won't make them leave customers funds

Oluwa

Something is telling me that there is more to this story than this lawyer has put forward in his statement.
I doubt that such flagrant diversion of a customer's funds would take place,especially given the fact that the accounts officer didn't abscond,but is still actively engaged by the bank.
Hope this is not another case of a customer,rather than the bank trying to blackmail a bank,to garner unwarranted financial benefit.Or that his money is save,but he misinterpreted and misrepresented the cumulative sum involved after inte

multiplatforms:
Lawyer Drags First Bank Before CBN Over Allegation Of N550m Fraud


A civil society organisation, Centre For Socio and Economic Justice, has dragged First Bank of Nigetia before the Central Bank of Nigeria, CBN, over allegation of funds diversion to the tune of N550m.

The centre called on the CBN to revoke the license of First Bank of Nigeria for unsafe practices and adding customer's finds are supposed to be safe with the bank.

According to a letter dated May 29, 2024, the Director of the centre, Barrister U. I. Mohammed, said a customer of the Bank, Dr. Agbai Eke Agbai, who has been a dedicated and resourceful customer of the First Bank of Nigeria Ltd “First Bank” with Fixed Deposit Account numbers – 6924010002639 and 5021000788976 whose funds amount to the tune of ₦ 550,000,000.00 was illegally diverted, misappropriated and fraudulently taken by the bank.

A copy of the letter received at the Security Services Department of the CBN which was also sent to First Bank said a staff of the bank, Mrs. Shamlar Abosi, who is supposed to be the account officer of Dr Agbai, illegally tampered with her client's account.

Parts of the petition titled, "PETITION AGAINST FIRST BANK OF NIGERIA FOR FRAUD, DIVERSION AND MISAAPROPRIATION OF FUNDS BELONGING TO DR. AGBAI EKE AGBAI" read, "In 2014, Mrs. Shamlar Abosi, a staff of First Bank approached DR. AGBAI EKE AGBAI to deposit funds in First Bank for a Return on Investment, DR. AGBAI EKE AGBAI after listening to the advice of Mrs. Shamlar Abosi accepted to deposit funds in the bank for an agreed interest rate.

"Fixed Deposit Accounts were subsequently opened for DR. AGBAI EKE AGBAI with the above-mentioned account numbers. The sum of ₦ 300,000,000.00 (Three Hundred Million Naira) only was deposited in Account number-6924010002639 which took effect on the 21st day of February, 2018 with interest rate of 14.5% with 364 days tenor, and the sum of ₦250,000,000.00 (Two Hundred and Fifty Million Naira) only was deposited in Account Number -5021000788976 which took effect on the 19th day of October, 2018 with interest rate of 14.5% with 364days tenor.

"After the maturity date of the investment which is on the 20th of February, 2019 and 18th of October, 2019 respectively, In September, 2023, DR. AGBAI EKE AGBAI informed First Bank of his intention not to renew the investment and requested his money to be transferred to his saving Account domiciled with the bank with Account number-3079342444 immediately.

"Unfortunately, the money requested by DR. AGBAI EKE AGBAI to be transferred to his savings account has not been credited till date after numerous effort to remind the bank of its failure to carry out the request.

"It is also noteworthy and remarkable that Mrs. Shamlar Abosi who persuaded DR. AGBAI EKE AGBAI into investing in the Bank, who is also the account officer and business manager of the investment has failed to provide explanation regarding the money of DR. AGBAI EKE AGBAI."

Barrister Mohammed said it is without doubt that the funds deposited in the Fixed Deposit Account numbers – 6924010002639 and 5021000788976 by Dr. Agbai Eke Agbai has been criminally and fraudulently diverted by First Bank without his consent or notice.

He said after sending their agent and officer, Mrs. Shamlar Abosi to persuade him into investing in the bank, the Bank has failed to refund the money illegally taken from him despite the numerous pleas, warnings and notices.

"We urge the Central Bank of Nigeria to investigate the fraudulent activities enumerated above, refund the money stolen and illegal diverted by First Bank, and to invoke its powers bestowed on it under Section 12 of the Banks and other Financial Institutions Act, 2020 by revoking the license of First Bank of Nigeria for unsafe practices and other fraudulent dealings", the centre said.

rest and seeing that the bank doesn't want to pay him what they feel is unwarranted and not in the deposit agreement,he has resorted to this tactic,trying to tarnish their name in the hope it would make them succumb.

Simple and straightforward matter that can be settled amicably but knowing the arrogance of Nigerian institutions, they'll open a war chest of 20 billion naira and head to court instead of settling quietly with him for under a billion naira and lots of sorry. Nigerian lawyers are to blame here, the need for hefty appearance fees will never allow them advise their clients properly. Let's see if this is different though it already seems too late

seborrhic:
Something is telling me that there is more to this story than this lawyer has put forward in his statement.
I doubt that such flagrant diversion of a customer's funds would take place,especially given the fact that the accounts officer didn't abscond,but is still actively engaged by the bank.
Hope this is not another case of a customer,rather than the bank trying to blackmail a bank,to garner unwarranted financial benefit.Or that his money is save,but he misinterpreted and misrepresented the cumulative sum involved after interest and seeing that the bank doesn't want to pay him what they feel is unwarranted and not in the deposit agreement,he has resorted to this tactic,trying to tarnish their name in the hope it would make them succumb.

I think a lawyer of all people should know the implications for libel