N40m fraud: Judge sets July 13 for close of defence
Justice A.R. Mohammed of the Federal High Court, Court 5, Abuja has set July 13, 2023 for the cross examination of the last defence witness Segun Arowolo on allegations against Midland Capital Market Limited and its managing Director Mr. Sam Kwandi bordering on operating as fund managers without registration by the Securities and Exchange Commission (SEC) among others.
Midland Capital and Bandi are being accused of obtaining the sum of N40million from one Mr Patrick Aibhalemen under false pretence that they are fund managers and going to invest the money on his behalf under a ‘Guaranteed Investment Product.’
They however, did not invest the money, thereby committing an offence contrary to Section 8 of the Advanced Fee Fraud and Fraud Related Offences Act, 2006 and punishable under Section 1(3) of the same Act.
In the five count charge brought against the company and its promoters by the Federal Republic of Nigeria, they are alleged to have on July 2008 within the jurisdiction of the honourable court with intent to defraud conspired with one Laurence Ogbebor presently at large to obtain the sum of N40million from one Patrick Aibhalemen Harrison Ataman under false pretence that they were Fund Managers and that they were going to invest the said sum under ‘A Guaranteed Investment Product’ which they did not and thereby committed an offence contrary to Section 8 of the Advanced Fee Fraud and Fraud Related Offences Act, 2006 and punishable under Section 1 (3) of the same Act.
“Midland Capital Market Ltd and Sam Kwendo Bandi together with one Lawrence Ogbebor presently at large, all of No. 10 Zambezi Crescent, Maitama, Abuja on or about July 2008 in Abuja within the jurisdiction of the court are accused to have obtained the sum of N40million from one Patrick Aibhalemen Harrison Ataman under false pretence that they are into Business as Fund Managers that they were going to invest the said sum under ‘A Guaranteed Investment Product’ which they did not and thereby committed an offence contrary to Section 1 (1) of Advanced Fee and other Fraud Related Offences Act 2006 and punishable under Section 1 (3) of the same Act,” the charge stated.
When the case came up for close of defence, the last defence witness told the court that the said funds were invested but profit was affected by the global financial crises at the time. The judge thereafter adjourned the matter to July 13, 2023 for cross examination of the witness.
The Federal High Court in Abuja had previously ruled that Midland and its Managing Director, Mr Sam Bandi, had a case to answer on allegations of falsely obtaining N40million from a client.
“Prosecution called three witnesses and tendered seven exhibits. After the close of the case by the prosecution, the company and Bandi raised a ‘No Case’ submission and the court ruled in favour of the prosecution and ordered that both the company and Bandi should enter their defence because they have a case to answer.”
