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Tuesday, February 25, 2014

N450m fraud: EFCC docks Union Bank staff



The Economic and Financial Crimes Commission has arraigned a former employee of the Union Bank Plc, Paul Onwughalu, before Justice S.S. Ogunsanya of the Lagos High Court, Ikeja.
The suspect, SHOWBIZPLUS gathered was charged on one count bordering on failure to conduct due diligence in financial transactions, a statement by EFCC spokesman, Wilson Uwujaren, said on Monday.
The EFCC said Onwughalu allegedly failed to conduct due diligence “in a mega scam that rocked the bank on 10 January, 2013 when some fraudsters hacked into its database and pulled out hundreds of millions of Naira.”
The anti-graft agency said the accused failed to conduct due diligence check on Dan Kawu Bureau De Change’s account domiciled in the bank, before authorising the payment of N450m to the company.

The charge reads, “That you, Paul Onwughalu, on or about the 9th of January, 2013, at Lagos, within the Ikeja Judicial Division, while being an employee of Union Bank Plc, failed to exercise due diligence in relation to conduct of financial transactions with one DanKawu Bureau De Change by confirming and authorising payment of the sum of 450m fraudulently transferred by hacking into Union Bank database (flexcube) and transferring the said sum to Union Bank Plc account of one DanKawu Bureau De Change domiciled in Union Bank, Head Office Branch, Marina, Lagos and thereby facilitated the crediting and withdrawal of the said sum by one DanKawu Bureau De Change to various accounts in Eco Bank, Diamond Bank, Zenith Bank, United Bank for Africa and Dankawu Bureau De Change.”
The defendant pleaded not guilty to the alleged offence.
The prosecution counsel, Fadeke Giwa, prayed the court to fix a date for trial and to remand the defendant in prison.
However, the defence counsel, O. Fagbemi, informed the court that he had already filed an application for bail.
Justice Ogunsanya adjourned the case till February 28, 2014 for hearing on the bail application and ordered that the defendant be remanded in the Kirikiri Maximum Prison.

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