Five Land Seven-Year Jail Terms Over N117.7m Chi Limited Fraud — full story

A Lagos State High Court, presided over by Justice K.A. Jose in Tapa, Lagos, has handed down seven-year prison sentences to five individuals implicated in a N117.7 million fraud case involving Chi Limited. The Economic and Financial Crimes Commission (EFCC) confirmed this judicial outcome on Friday through an official statement posted on its X platform.

The convicts, identified as Yinka Salawu, Joshua Oluremi Daramola, Raji Ahmed, Afolabi Israel Olusegun, and Muraina Olanrewaju Abdullahi, faced prosecution by the EFCC's Lagos Zonal Directorate 1. They were arraigned on a six-count charge encompassing allegations of conspiracy to obtain money through false pretences, actual obtaining of money by false pretences, and forgery.

One of the charges detailed how the defendants, in 2009, fraudulently obtained N81,359,922 from Chi Limited. This sum was allegedly received under the false claim that it was payment for goods and services supplied to the company, which were never delivered.

During the extensive trial, the prosecution presented seventeen witnesses from various agencies including the EFCC, the Nigeria Police Force, several banks, and Chi Limited. Numerous documentary exhibits were also tendered as evidence. Following the conclusion of proceedings, Justice Jose found the first, fourth, fifth, sixth, and seventh defendants guilty on Counts One, Two, and Three, leading to their convictions. Conversely, the second, third, and eighth defendants were discharged and acquitted.

Subsequent to the convictions, the prosecution counsel, M.S. Owede, appealed to the court to invoke Section 11 of the Advance Fee Fraud and Other Fraud Related Offences Act. Owede requested an order for the convicts to restitute Chi Limited with the sum of N117,755,061, which corresponds to the amounts specified in Counts Two and Three. Additionally, the prosecution sought an order for the sale of properties belonging to the first convict, with the proceeds to be remitted to Chi Limited, or for the properties to be forfeited directly to the company.

In her judgment, Justice Jose sentenced each of the five convicted individuals to seven years in prison, explicitly stating that there would be no option of a fine. The judge clarified that “The convicts will be given credit for the periods they have already spent in custody. All periods spent in prison shall be deducted from the seven-year terms imposed by the court.”

Regarding the restitution, Justice Jose, referencing Section 297 of the Administration of Criminal Justice Law, mandated that the convicts repay Chi Limited the total sums outlined in the charges. She further added, “All monies already paid shall be deducted from the amounts to be restituted.”

The EFCC stated that the case originated from the arrests of the convicts following allegations of an N81.3 million fraud. The commission reiterated that the money was obtained from Chi Limited under the deceitful premise of payment for goods and services that were neither provided nor subsequently returned to the company.