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Exclusive: Controversial First City Monument Bank In The Hand Of Yemisi Edun!

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2 years ago

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By: Sunday Adebayo 

 

First City Monument Bank (FCMB), a member of FCMB Group Plc, is a financial services holding company headquartered in Lagos. FCMB Group Plc has nine subsidiaries divided among three business groups: commercial and retail banking, investment banking, and asset and wealth management. As of December 2020, the Group’s total assets were valued at US $5 billion (NGN: 2 trillion).

The entity from which the bank was founded, City Securities Limited (CSL), was established in 1977 by Oloye Subomi Balogun, the Otunba Tunwashe of Ijebu, a Yoruba traditional aristocrat. First City Merchant Bank was established in 1982 with seed from CSL. It was incorporated as a private limited liability company on 20 April, 1982 and granted a banking license on 11 August, 1983. It was the first bank to be established in Nigeria without government or foreign support. In 2001, the name of the bank was changed from First City Merchant Bank to First City Monument Bank Limited following the bank’s transformation to a universal bank. A new subsidiary, FCMB Capital Market Limited, was formed to support it’s corporate finance activities. On 15 July,2004, FCMB changded its status from a private limited liability company to a public limited liability company.and was listed on the Nigeria Stock Exchange (NSE) by introduction on 21 December, 2004.

Inspite of the fact that the banking industry is the most controlled and regulated industry in Nigeria, fraud has continued to rear it ugly head in the industry. It has eaten deep into every unit and department in the banking sector. The level of fraud in the present day Nigeria has assumed an epidemic dimension. Today the very integrity and survivability of these laudable functions of Nigeria banks have been called into question in view of incessant fraud and accounting scandals. More money is stolen through banks by means of fraud committed with pen than through other means and the banking industry falls victim to fraudulent act suffers and bears the brunt.

The current Managing Director (MD) of FCMB Yemisi Edun, was named Acting Managing Director in January 2021 after the Managing Director at that time , Adam Nuru, stepped down due to an alleged paternity scandal. In July 2022, the appointment became official, making her FCMB’s first female CEO. Edun first joined the bank in the year 2000 as the Divisional Head of Internal Audit and Control.

Recent fraudulent and scandalous act under her watch as the Managing Director has brought up question about her competence and also about the integrity of FCMB group plc. Some of recent scandal and fraudulent act related to FCMB which has brought a set back under the management of Yemisi Edun will be discussed in this article.

 

Court Orders FCMB To Pay N540m To Pastor Wrongly Accused of Laundering Money For Magu

First City Monument Bank (FCMB) is in hot soup as the Federal Capital Territory High Court has ordered the bank to pay N540.5 million in damages to Pastor Emmanuel Omale of the Divine Hand of God Prophetic Ministry and his wife Deborah over false claim that they laundered N573 million for former chairman of the EFCC, Ibrahim Magu.

Delivering the judgement in the law suit, Yusuf Halilu, the judge held that the bank breached its “duty of care to the claimants”, the Omales and their church.

The judgement was on the suit marked:

FCT/HC/CV2541/2020 filed by Mr Omale, his wife and the church.

The judge held that the evidence before the court showed that the bank admitted error in its report to the NFIU of entries in the account of Divine Hand of God Prophetic Ministry which was accused of laundering money on Mr. Magu’s behalf.

Mr. Halilu also said the bank claimed that purported N573 million was wrongly reflected as credit in Divine Hand of God Prophetic Ministry’s account by its reporting system, which is recently upgraded.

The judge held that FCMB admitted the error, which brought incalculable damage to the reputation of the claimant both within and outside the Nigeria – depleting their church’s membership.

Mr. Halilu said the claimants provided sufficient evidence to establish case of negligence against FCMB.

Consequently the judge awarded N200 million as aggravated damages; N140.5 million as specific damage and N200 million as general damage.

 

‘N1.2B Fraud’: FCMB Manager, 2 Others Docked

The Ikeja GRA manager of First City Monument Bank was on Wednesday 30th March, 2022 docked before a Lagos High Court for allegedly aiding 1.2 billion fraud.

Munis was arrained on 15 counts amended charge alongside Dare Osamo and Ayoola Bisola who had earlier been arraigned before the court presided over by Justice Oyindamola Ogala.

At the resumption of trial, the Director, Lagos State Department of Public Prosecution, Dr Jide Martins, informed the court that the state had an amended charge to include the branch manager who allegedly connived with Dare Osamo to swindle star orirnt owned by a business man, Otunba Babatunde Akanbi Babalola.

According to the amended charge, Munis on the 15th day of February, 2016, while acting as branch manager First City Monument Bank Plc situated at No 48, Isaac John street, Government Residential (GRA) Branch, allegedly commited the offense.

The court further stated that Munis and Osamo, allegedly demonstrated intention to defrauding without lawful authority or excuses approved the opening of a new account for Star Orient Nig. Ltd when there were no Special Control unit against Money Laundering Certificate number on the account opening form.

The charge also state that the duo of Munis and Osamo, allegedly ran foul of banking rule when they opened the account without full details of the directors of Star Orient Nigeria Limited, no means of identification or BVN (Bank Verification Number) of the directors Star Orient Nigeria Limitedand upon a forged resolution purportedly signed by Dare Osamo as sole signatory when there are two directors who are signatories to star Orient Nigeria Limited’s account.

Dr. Martins announced to the court of the existence of the amended charge and urged the court to take his plea over the allegation levelled against him.

Consequently Munis pleaded not guilty to four-count charge relating to him out of the fifteenth count charges.

The state prosecutor, thereafter, asked the court for a trial date and ramand order pending the determination of his bail application.

In a counter reaction, J.O Olushade, who represented Dr. Wale Olawoyin, SAN, as councel to the branch manager, informed the court of his bail application while praying for liberal terms.

The defense counsel moved the bail application by adopting it as he prayed the court to admit the defendant to bail because the offense allegedly committed by the defendants are bailable.

Opposing the bail, the state DPP said the court must consider the severity of the offense.

Delivering ruling on the bail application, Justice Ogala granted the 3rd defendant bail in the sum of N20million with two sureties.

The court ordered that the sureties must be residents in the state and have title to landed property.

She said they must provide evidence of tax payment to the state government as well as their residential address which must be verified.

She further ordered the defendant to submit his international passport.

 

 

‘N900m fraud’: How Hacker Linked ATMs To FCMB Customer’s Account

The printed document showing how scammers hacked into the computer database of First City Monument Bank (FCMB) and stole over N900 million belonging to customers were brought before Justice Oluwatoyin Taiwo of the special offenses court sitting in Lekki, Lagos State.

Also brought before the court were the suspects – Gideon Oluwatimilehin, Abiodun Aina, Samuel Adenitiri, Oluwasegun Daliu, Olaitan Ajibola Shehu, Moyosore Sulaimon and Adeyinka Akinji.

The Economic and Financial Crime Commission (EFCC) had earlier arraigned the severity suspects for allegedly defrauding FCMB of over N900 million.

The suspects were accused of conspiracy to defraud and unauthorized access to FCMB computer materials and software.

The EFCC alleged that the seven defendants did steal by unauthorized transfers and withdrawal from various FCMB points nationwide of the sum of 900 million, property of the owners of and various customers of FCMB from their accounts to various accounts outside the bank via POS and ATM.

Tendering t the certified documents showing how the scammers hacked into the computer database of the bank before the special offenses court on Friday, an investigation officer in the Group Internal Audit Division of FCMB, Olayinka Olaleye disclosed that the fraudulent act was carried out between March 9 and 10, 2018.

Olaleye, who was introduced as a witness to the court by the prosecuting counsel, B.C Bennett, revealed that the Automated Teller Machine (ATM) card details of one Abdullahi Kazeem was linked to the corporate account of Eko Hotel Limited as if the hotel has an a card on it’s bank account, nothing that the ATM card belonging to Kazeem was used to withdraw a large sum of money by the defendants.

He said: “The defendants and other perpetrators still at large gained unauthorized access into the system of FCMB. They fraudulently conspired together and deleted information and hacked into the password of some users in the bank to increase transaction limit on the corporate accounts, increased the transaction amount and they increased the transaction frequencies and linked their ATM card into these corporate accounts to make huge withdrals.

“The fraud did not take the usual pattern where you can easily narrate how money moves from one account to another.

“The transaction limit and amount on the Eko Hotel account was fraudulently enhanced as our system was hacked otherwise one shouldn’t have been able to withdraw N150,000 or N500,000 daily.

“On the same day March 9, 2018, various ATM withdrawals of N20000 each was carried out because the transaction limit and account been enhanced and the suspects were able to make limitless withdrawal. That was how the ATM card of Abdullahi Kazeem that was fraudulently collected by Gideon Oluwatimilehin and later handed over to Osita Martin’s who is currently at large was used.

“If not for forensic investigation, there is no way one will be able to trace the withdrawal to the account of Kazeem. By the time we conducted a forensic investigation on the account of Eko Hotel Limited, we were able to see the card linked to the account and cash withdrawals were made”.

He further stated that the transactions on the Eko Hotel’s account were fraudulently executed via transfers and cash withdrawals using the ATM.

The investigation officer further told the court that ATM card of another defendant Adeyinka Akinji, was linked to the account of MTN to withdrawal millions of naira.

“The card of Adeyinka Akinji was linked to the account of MTN. His own card was handed over to Oluwasegun Daliu and the pattern used was cash withdrawal through ATM.

“The transaction took place on the same day because the transaction limit at account of MTN were fraudulently enhanced; the transaction count was increased as well,” he stated.

Olaleye added that the defendants and others still at large also defrauded FCMB by linking the ATM card belonging to Olaitan Ajibola Sheu to the corporate account of Multichoice Nigeria Limited.

He stated that the defendants made huge withdrawal from Multichoice’s account via ATM and POS.

However, during cross examination by the Defense counsel, Lekan Egberonbe, the witness said he has worked with FCMB for eight years.

Egberonbe further asked the witness of the footage that showed when the defendant made use of the ATM, while the investigation officer said the footage, which was unavailable as of the time he appeared in court, can be provided.

Justice Oluwatoyin Taiwo, thereafter, adjourned the matter till February 14, 2022, for further hearing.

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Staff hack Sterling Bank system, steal depositors’ N1.2bn funds

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5 hours ago

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January 20, 2025

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Sterling Bank Limited and its holding company, Sterling Financial Holdings Company, are currently battling a N1.257, 536, 572. 80 billion depositors’ funds which were stolen from the bank by some of its staff.

We gathered that the staff colluded with some fraudsters to hack the bank’s banking platform and stole the said fund.

The suspects, namely Victor Nwabueze (50), Favour Odey (22), Adekunle Daniel (34), Akachukwu Alagbogu, and Yetunde Oguntade (28)—were arraigned by the Police Special Fraud Unit (PSFU), Ikoyi, Lagos, before Justice Ambrose Lewis-Allagoa at the Federal High Court in Lagos on Thursday.

The group faced a three-count charge of conspiracy, hacking, and money laundering under the Cybercrimes Act and Money Laundering Prohibition Act.

The prosecutor, Barrister Justine Enang, alleges that the suspects, in collaboration with internal staff of Sterling Bank, breached sensitive systems between November 3 and 4, 2024, using compromised data, including IP addresses and mobile equipment identities – 14984244, IP address 84252.113.3 & 88 transaction., to transfer funds to fraudulent accounts.

He informed the court that the alleged acts of the defendants contravened sections 27(1)(b); 14(1) of the Cyber Crimes (Prohibition, Prevention Etc.) Act, 2015 as amended in 2024, Read along with section 14(1) of the same Act.

Enang also told the court that the defendants’ act was contrary to and punishable under Section 18(2)(b) & (d) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.

The Charges Against The Defendants Read: “That you Victor Nwabueze Ogochukwy “m”, Favour Odey “f’, Adekunle Daniel “m”, Akachukwu Alagbogu and others now at large, sometimes on the 3rd & 4th November 2024, in Lagos State, within the jurisdiction of the Judicial Division of The Federal High Court, with intent to defraud, did conspire amongst yourselves to commit a felony to wit: internet fraud to the sum of N1, 257, 536, 572.50 (One Billion, Two Hundred and Fifty Seven Million, Five Hundred and Thirty Six Thousand, Five Hundred and Seventy Two Naira, Fifty Kobo) by false pretence and thereby committed an offence contrary to section 27(1)(b) of the Cyber Crimes (Prohibition, Prevention Etc.) Act, 2015 as amended in 2024, Read along with section 14(1) of the same Act.

“That you Victor Nwabueze Ogochukwu “m”, Favour Odey “f’, Adekunle Daniel “m”, Akachukwu Alagbogu and others now at large, sometimes on the 3rd & 4th November 2024, in Lagos State, within the aforementioned Judicial Division of The Federal High Court, did knowingly and without authority cause financial lost to Sterling Bank Plc to the tune of N1, 257, 536, 572. 80 (One Billion, Two Hundred and Fifty Seven Million, Five Hundred and Thirty Six Thousand, Five Hundred and Seventy Two Naira, Fifty Kobo) by suppressing one of the banking platform and Bance Application from their various customers’ account to different fraudulent accounts with the collusion of an internal staff/external parties for possible compromise on sensitive data and security system of the bank by using international mobile equipment identity 14984244, IP address 84252.113.3 & 88 transaction, thereby conferred economic benefits on yourselves by converting the money in question to your own use against the Sterling Bank Plc and thereby committed an offence contrary to and punishable under Section 14(1) of the Cyber Crimes (Prohibition, Prevention Etc.) Act, 2015 as Amended in 2024.

“That you Victor Nwabueze Ogochukwu ‘m’, Favour Odey ‘f, Adekunle Daniel ‘m’, Akachukwu Alagbogu and others now at large, sometimes on the 3rd & 4th November 2024, in Lagos State, in the aforementioned Judicial Division of Federal High Court, Lagos, did directly or indirectly converts or transfers, retains or takes possession or control of funds belonging to Sterling Bank Plc, knowingly or reasonably ought to have known that such funds is, or forms part of the proceeds of an unlawful Act and thereby committed an offence contrary to Section 18(2)(b) & (d) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.”

While they pleaded not guilty, the prosecution opposed bail, citing the defendants’ potential flight risk.

Justice Lewis-Allagoa eventually granted bail at N50 million each, with one surety who must own landed property within the court’s jurisdiction.

Pending bail fulfillment, the accused were remanded in custody.

The case is adjourned to March 13, 2025, for trial.

Authorities continue to investigate other suspects believed to be at large.

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Arik Air shareholders tackle AMCON over N455bn debt claim

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7 hours ago

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January 20, 2025

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The shareholders of Arik Air, an indigenous airline currently under the control of the Asset Management Corporation of Nigeria, have debunked claims that the debt accruable to the airline’s owner, Johnson Arumem-Ikhide, has risen to N455bn.

The shareholders, through a statement signed by their representative, Godwin Aideloje, described as fallacy the debt record of AMCON against Arik founder.

Earlier, AMCON, through its Head of Corporate Communication, Jude Nwauzor, said the total debt of Arumem-Ikhide was N455.17bn as of December 31, 2024, in all his three investments.

AMCON also said that its intervention in the troubled airline in February 2017 saved the carrier from liquidation, insisting that it would ensure the recovery of the total debts owed to the corporation by various business organisations in Arik Air.

Giving the breakdown of the total debt, Nwauzor alleged that Arik as of December 2024 owed AMCON N227.6bn; Rockson Engineering, N163.5bn, while Ojemai Farms owed the corporation another N14bn, totaling N455bn.

Reacting to this, Arik shareholders refused to comment on the matter saying it was currently before the court.

“This is a matter before the court. Unlike AMCON who have no respect for the courts, we will not resort to subjudical remarks. We will not join the desperate attempt by AMCON to overreach the courts and desecrate our justice system.

“The fictitious claim of N455bn as alleged Arik Air indebtedness to AMCON by Mr Jude Nwauzor is a fallacy. It seems clear that AMCON is invested in dubious storytelling and falsehoods.

This allegation is defeated by AMCON’s claim in its Suit No. FHC/L/CS/175/17 with which it took Arik Air into receivership and gained full control and management of operations, assets, and liabilities of the airline,” they stated in the statement.

The shareholders recalled a Federal High Court judgement of March 31, 2023, ordering AMCON and its Receiver Manager to file a statement of affairs and audited financial reports with the Corporate Affairs Commission to balance and compare the books, Aideloje said AMCON refused to appear before a Financial Reporting Council to defend it positions.

The shareholders said rather than appear before the reporting council, AMCON uploaded the audited account of the business(es) on the Arik Air website, a document the shareholders have also dismissed.

During the press briefing, the Head of Corporate Communication at AMCON said considering the state of Arik Air’s insolvency at the takeover time, the airline would have been sold in its entity if not for the intervention of the Federal Government which directed that the airline should be managed.

But in the shareholders’ reaction, Aideloje stressed that “It is instructive to note the new version of the reason why AMCON took over Arik is a government mandate. What a preposterous statement from a Federal Government employee! This is a gross misrepresentation of the Federal Government as being in the business of arbitrary takeover of private businesses with a stroke of pen. This is indeed a disservice to the government and people of Nigeria by AMCON.

“We wish to state again that before the forceful takeover, Arik Air was recognized for its operational excellence and significant contributions to Nigeria’s aviation sector. Contrary to AMCON’s claims, the airline was meeting its financial obligations, as evidenced by remarks and recognition by global institutions; recently Afreximbank acknowledged legacy Arik as a model in Africa at a just-concluded International Aircraft Leasing and Finance Conference in Ireland Dublin a few days ago.”

 

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Bisi Onasanya Refutes Allegations, Vows to Defend Reputation

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23 hours ago

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January 19, 2025

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A former Group Managing Director of First Bank, Dr. Bisi Onasanya has dismissed allegations circulating on social media, suggesting his involvement in a purported commercial loan facility transaction controversy carried out 12 years ago at First Bank.

 

In a statement released to the press over the weekend, Onasanya, who spoke through his Communication Advisor, Mr. Michael Osunnuyi, described the claims as baseless and an attempt to tarnish the stellar reputation of the renowned retired banker and Chartered accountant.

 

 

 

“Our attention has been drawn to allegations and charge sheet circulating on social media suggesting Dr. Bisi Onasanya’s involvement in a purported commercial loan controversy at First Bank 12 years ago,” Osunnuyi said.

 

 

 

“While we have consistently chosen to ignore such baseless attacks for over ten years, the growing concern expressed by family, friends, and associates from across the globe compels us to address these unfounded claims.”

 

 

 

The Communication Advisor said that Dr. Onasanya served First Bank with dedication and integrity throughout his illustrious career.

 

 

 

“His stellar reputation of integrity, built over four decades of impeccable professional service, cannot and will not be tarnished by these false allegations and incorrect charges,” the statement noted.

 

 

 

According to the statement, the matter in question was investigated eight years ago by the Economic and Financial Crimes Commission, EFCC two years after Dr. Onasanya had voluntarily and meritoriously retired from the bank as the group managing director upon the completion of two terms in office. Since then, Dr. Onasanya has not been contacted on this matter and has remained willing to support and cooperate with the law enforcement if required.

 

 

 

“What is baffling,” the statement continued, “is that a commercial transaction which occurred in 2013 and was thoroughly investigated eight years ago, where Dr. Onasanya established his innocence and non-involvement in the commercial transaction controversy, has now resurfaced in 2025 in the form of criminal prosecution. This is beyond his imagination.”

 

 

 

It also noted that, to date, Dr. Onasanya has not been served with any charges, summoned, or formerly invited by any court or investigating agency regarding these claims since the matter was investigated and dispensed eight years ago.

 

 

 

However, he stated categorically that Dr. Onasanya is readily available anytime in Nigeria to have his day in court whenever he is summoned to defend his reputation and clear his name.

 

 

 

Osunnuyi further pointed out that the allegations appear to follow a deliberate pattern every year with identical language and content being disseminated across multiple media platforms. He urged the media to exercise caution and verify information before publication, stressing the serious implications of libel.

 

 

 

“We have noticed a pattern of identical language and content being circulated across various media platforms, suggesting a deliberate attempt to manipulate public perception. It looks more like a hatchet job by some unscrupulous people to continue to malign and tarnish the image of Dr. Onasanya. We strongly appeal to the media to verify the information they disseminate and act responsibly,” Osunnuyi added.

 

 

 

“Since voluntarily leaving First Bank and the banking industry in 2015, he has endured and ignored incessant and unwarranted attacks on his person,” Osunnuyi said.

 

 

 

“These persistent efforts to malign his character are deeply regrettable and baseless.”

 

 

 

The statement also clarified that Dr. Onasanya has never expressed interest in which person or group of persons in charge of the control or ownership of First Bank or any other financial institution, for that matter. Instead, he has moved on from banking and remained committed to making a positive impact in people’s lives and other sectors of the economy.

 

 

 

Dr. Onasanya expressed gratitude for the support of his family, friends, and associates, whose belief in his integrity has been a source of strength. He assured them that he remains focused on upholding the values and principles that have defined his career and life over the years and he would leave no stone unturned to defend his reputation and expose the truth regardless of whose ox is gored.

 

 

 

“We are confident that the truth will ultimately prevail and that justice will be served. Dr. Onasanya remains committed to upholding his unblemished record and will continue to cooperate fully within the ambit of the law to clear his name,” the statement concluded.

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