CASE NUMBER 10915:

EX-BANK PHB BOSS, PLEADS FOR MERCY, BAGS 6 YEARS JAIL TERM

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Alleged Perpetrators(s)

Francis Atuche Ugo Anyanwu

Location (Town / State)

Lagos State, Lagos

Date of Event

16 Jun 2021

Date of republication

16 June every year

Case category (Choose all that apply)

Case Summary

A lagos State High Court in Ikeja has frozen assets and funds to the tune of N19,178,253 050 billion allegedly kept in 24 banks by the convicted former Managing Director of the defunct Bank PHB, Francis Atuche.

Full story

Francis Atuche is a renowned Nigerian banker. He was the Managing Director/Chief Executive Officer of Platinum and Habib Bank (Bank PHB), born in Delta State, Nigeria. Atuche is the Senior Adviser, Homeland Real Estate Company and also a big player in the real estate industry. He is also Senior Advisor at the Investment management firm of Sapphire Capital Management Limited.

The EFCC on Wednesday, 16th June, 2021 has re-arraigned Mr. Francis Atuche, the former Bank PHB chief, his wife, and Mr Anyanwu, the bank’s former chief financial officer on the count of stealing and conspiring to steal N25.7 billion belonging to the bank. Delivering her sentence, Justice Lateefa Okunnu of the Ikeja Division of the Lagos State High Court sentenced Atuche, the former managing director of the defunct Bank PHB, to six years in prison for stealing N27 billion, alongside Ugo Anyanwu, the bank’s former chief financial officer, to the same six years in prison. While Mr Atuche’s wife, Elizabeth, was, however, discharged and acquitted.

The EFCC had alleged that between November 2007 and April 2008, the accused persons stole about N25.7bn belonging to the bank. The anti-graft agency had also claimed that of the total N25.7bn, they stole about N14.7bn by fraudulently describing it as a loan to some companies and subsequently converted the said sum to personal use. The commission had listed the companies as Future View Securities, Extra Oil Limited, Resolution Trust and Investment Limited, and Tradjek Nigeria Ltd.

The EFCC also alleged that another N11bn stolen by the defendants was used to purchase about 984,375,000 units of Bank PHB shares for themselves. The commission confirmed that the sum used for purchasing the shares was described as a loan to some companies including, Guesstrade Services, Sentron Trading, Montrax Investico, Claremount Management Ltd., Trenton Trade, and others. In proof of its case against the accused persons, the EFCC called 12 witnesses who gave oral evidence. It also subpoenaed six others to present some documents which were admitted as exhibits by the court.

The two were convicted on at least 6 of a 27-count amended charge of conspiracy to commit a felony and stealing brought against them by the Economic and Financial Crimes Commission (EFCC). While Atuche, who was found guilty on counts 1, 3, 5, 7, 9, and 23 of the charge, would serve a 6-year term for each count, Anyanwu will serve a 4-year jail term for counts 2, 4, 6, 8, 10, 11, 22 and 24 of the amended charge.
They are to serve their jail term consecutively. This sentence is coming after a trial that lasted over 12 years.

In delivering her sentence, Justice Okunnu held that the EFCC successfully proved its case against the convicts beyond a reasonable doubt. The judge rejected claims by the defendants suggesting that they were merely professionally negligent. She specifically held that Atuche and Anyanwu abused their powers, ignored established rules and regulations, thereby putting the bank and depositors' funds in danger. The court also concluded that the convicts corruptly took advantage of their positions to confer on themselves undue financial benefits without regard to the bank's health. "The convict stole from the bank and depositors, and because of their action, taxpayers money was used to bail out the bank".

On hearing the sentence, Atuche begged the judge not to send him to jail, pleading for mercy, he said, “All the time I was the MD of Bank PHB, I gave my all to the bank”. Never at any material time did it occur to me that I would set up a scheme to defraud the bank. I plead for mercy, leniency, your kindness, and I plead that out of your kindness and generosity, you will not allow me to go to jail. I am sorry and remorseful,” he said. Justice Okunnu held that she had considered the convicts' plea, but there must be consequences for wrongdoing, adding that sentences are not just for punishment but also for deterrence. She also ruled that the defendant should make restitution of the amount stolen from the bank. They are to pay back the sum of N25.7billion to the Federal government to replace the funds stolen from the public to bail out the bank, as well as serve their jail terms at the Kirikiri maximum correctional facility in Lagos.

In furtherance, Justice Lateefat Okunnu also froze assets and funds to the tune of N19.17 billion allegedly kept in 24 banks by the convicted former Managing Director of the defunct Bank PHB, Mr. Francis Atuche. The order was sequel to an application filed by the EFCC in Charge No. ID/1549/2011, between the federal government and Atuche and Mr. Ugo Anyanwu as first and second defendants. The order reads in part: “An order is made freezing any bank accounts being run and operated by the first defendant, Atuche, personally or jointly, whether in his personal name or otherwise or with the Bank Verification Number: 22295357230 in any of the respondent banks to the tune of N19, 178, 253, 050:00 (Nineteen billion, one hundred and seventy-eight million, two hundred and fifty-three thousand, fifty naira only) pursuant to the restitution order made by this honorable court on the 16th day of June, 2021.”

The banks where the funds were lodged include Access Bank Plc.; Citi Bank Ltd; Ecobank Nigeria Ltd; Fidelity Bank Nigeria Plc.; First Bank of Nigeria Plc.; First City Monument Bank and Globus Bank Ltd; Guaranty Trust Bank Plc.; Heritage Bank Ltd; Keystone Bank Ltd; Lotus Bank Ltd; Mainstreet Bank Plc. Others are, Polaris Bank Plc.; Platinum Mortgage Bank Ltd, Providus Bank Ltd and Stanbic IBTC Nigeria Ltd, Standard Chartered Bank, Sterling Bank Plc., Titan Trust Bank Ltd, Union Bank Of Nigeria Plc, United Bank For Africa Plc., Unity Bank Plc., Wema Bank Plc. and Zenith Bank Plc.

The court also froze any bank account being run and operated by Atuche “personally or jointly, whether in his personal name or otherwise or with the Bank Verification Number: 22295357230 in any of the respondent banks to the tune of N19,178,253,050.00 only, pursuant to the restitution order made by this honorable court on the 16 day of June 2021.” She barred Atuche and his privies – including his lawyers – from presenting to the Respondent Banks any mandate or instruction for the withdrawal of any money and/or funds standing to the credit of any of their accounts to the tune of N19, 178, 253, 050.00.” as well as restrained the banks from honoring any such instruction from Atuche and his privies. The judge added: “A mandatory order of injunction is made directing the named respondent banks to file within 48 hours of service of this order of this honorable court on them returns of the statements of account of the 1st Defendant (personally or jointly) whether in his personal name or otherwise or with the Bank Verification Number: 22295357230 and the accounts of persons and entities listed in the afore mentioned Schedules A and B maintained with them…

According to the EFCC, 15 persons were used as front by Atuche to launder the funds. They are: Anthony Atuche, Emeka Patrick Atuche, Paul Okobi, Felix Oyiana, Moruf Kazeem Adisa, Olatunji Abiodun, Daniel Enebeli, Aina Olugbenga, Augustine Nwabueze, Omonua Benedict, Oliver King Nduaaron, Dr. Chris Ike Ogbechie, Mr. Murat Bektaslar, Attah Omataikpo Olukemi and Thomas Etuh.

The 22 firms in which Atuche has interest in directly or indirectly, according to the EFCC, are Aqua Harvest Ltd, Hubmart Stores Limited, Hubmart Limited, Sapphire Capital Management Limited, Homeland Real Estate Company Limited, Malechi Foods Limited, Homeland Meridian Partners Limited, Promise Investment Limited, Temple Cottage Hotel Limited, Wegas Properties Project Limited, Buckhead Construction Limited, Claremount Management Services Limited, Afco Associates Limited, Platinum Capital Limited, Ghazali Yakubu Investment Limited, The Financial (Services) Company Limited, Venture Resources Limited, Elizabeth-A Company Limited, Signature Partners Limited, Purplepay Technologies Limited, Oakwood Asset Management Limited And Conesto Nigeria Limited.

External links/URLs

https://www.premiumtimesng.com/news/headlines/468164-breaking-judge-convicts-defunct-bank-phb-boss-atuche.html
https://nairametrics.com/2021/06/17/former-bank-phd-md-francis-atuhe-sentenced-to-six-years-imprisonment-for-n25-7-billion-fraud/

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