IGP prosecutes Nigerian businessmen over alleged N13.5 billion forex fraud dispute  

This is according to the IGP’s legal team’s pending lawsuit before the Federal High Court, marked FHC/ABJ/CR/518/2022, exclusively seen by Naijaonpoint.

The police allege that a foreigner, Rafik Akar, was defrauded by Victor Arinze, Yahaya Karami, and three others partly involved in Bureau de Change (BDC) businesses.

They purportedly induced him to transfer the naira equivalent of $38,260,000 (at N353.00 per $1 in 2019).

The IGP’s legal team, led by Simon Lough SAN, accuses the defendants of conspiring to defraud Rafik Akar of N13,505,780,000, part of which was paid into the bank accounts of Pearson Nigeria Limited, Lasuccess Ventures Ltd, Rainforest Ballroom, and Cynosure Lounge—companies allegedly linked to the defendants.

The defendants were also accused of: “Acting in concert and with intent to conceal or disguise the origin of the said N13,505,780,000.00, you fraudulently obtained from Alhaji Rafik Akar on the pretence that you have $38,260,000 dollars to sell to him at the rate of N353.00 per $1.  

“Based on that deceit, he transferred the naira equivalent of the dollars, which amounted to N13,505,780,000.00, into your companies’ accounts and shared it among yourselves.” 

The police alleged that the defendants used the funds to purchase some properties which are scattered in Lagos, Abuja and Delta states.

The IGP’s legal team further claimed that the Thailand police, in collaboration with the Nigerian police, later discovered that the $38,260,000 the defendants allegedly promised the foreigner were “proceeds of fraud.”

According to court documents, investigating police officers are expected to testify about their findings and tender exhibits in the ongoing case.

The money laundering legislation was aimed at strengthening the existing system for combating money laundering and related offences, making adequate provisions to prohibit such activities.

According to comments made by the EFCC Chairman, Olanipekun Olukoyede, during the 17th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria, several unethical practices are plaguing the financial sector, including foreign exchange manipulation, fraudulent charges imposed on depositors, and active involvement in money laundering schemes.

“Sharp practices such as forex trading, defrauding depositors through phantom charges, and complicity in money laundering and illicit financial schemes involving politically exposed persons continue to undermine the integrity of the sector and, by extension, the nation’s economy,” he said.

The expert view suggests a surge in fraud cases in Nigeria, stressing it threatens to derail Nigeria’s progress, as well as the growth of individual and small businesses.

The case further highlights the ongoing legal efforts by law enforcement authorities, especially the Nigerian Police, to curtail perceived unlawful activity and enforce the extant provisions of the Money Laundering Act—legislation that covers a broad range of definitions and implications for financial crimes.

The Money Laundering (Prevention and Prohibition) Act 2022 stipulates jail terms for acts such as concealing the origin of funds, evidence, and fraud, among others.

The Money Laundering (Prevention and Prohibition) Act 2022 stipulates jail terms for acts such as concealing the origin of funds, evidence, and fraud, among others.