Bank MD arraigned for Alleged N32.6m Fraud

The former Managing Director of the Mortgage PHB Limited, Bayo Adewakun, was on monday arraigned before for allegedly defrauded the mortgage firm of the sum of N32, 632, 667.91 million.
The defendant was arraigned before Justice Saliu Saidu of Federal High Court, Lagos by the office of Department of Public Prosecution (DPP) of the Office of Attorney-General of the federation (AGF), on four counts charge of reckless granting of loan facilities without having mandatory approval from the Bank.

Adewakun, founder of a consultancy firm, B.Waks Consultant, situated at 72, Queen Street, Alagomeji, Lagos, was alleged to have committed the offence between April 29, 2014 and June 28, 2019, while at the helm of affairs of the mortgage firm.
Apart from allegedly defraud the bank of the said sum, he was also accused of recklessly granting loan facilities of more than 20 percent of shareholders’ funds to his firm, B. Waks Consultant.
The alleged offences according to prosecutor, Mrs. Gladys Ezinwa-Ukoha, are contrary to 15(1)(a)(i) of the Failed Banks (Recovery of Debts and Financial Malpractices in Bank Act) CAP F2, Laws of the Federation of Nigeria 2004 and Punishable under Section 16(1) (3) of the same Act.
And sections 20 and 18(a) of the Banks and Other Financial Institution Act (BOFIA) CAP F2 Laws of the Federation of Nigeria 2004 and Punishable under under Section 18(2) of the same Act.
The prosecutor told the court that the defendant allegedly recklessly granted a facility of N10 million, N5 million and N17. 632, 667.91 million, to his firm, B. Waks Consultant, without adequate security for such facilities.
The prosecutor also told the court that the defendant used the said facilities to partly finance the completion of a Housing Development at Victoria Garden City (VGC) for outright sale.
The defendant however pleaded not guilty to the charges. The defendant’s counsel, S. B Joseph and A. A. Kelani told the court that they have filed their client’s bail application and has been served on the prosecutor. The counsel pleaded for a short date to hear and determine the application.
Justice Saidu adjourned the matter till Monday, March 16, for hearing and determination of defendant’s bail application while the defendant remain in the custody of Nigerian Correctional Services (NCS) till the determination of the bail application.