23 NOV 2005
From the Associated Press:NIGERIA: Financial crimes agency returns millions to Brazilian bank
ABUJA, 23 Nov 2005 (IRIN) - Nigeria's financial crimes agency has returned US $17
million to a Brazilian bank - the first installment of $242 million siphoned by scammerls said.
The swindle which led to the bank's collapse - marks one of the biggest cases of 419
fraud that government officials have cracked.
Nigeria has become notorious for fraudsters who pitch bogus schemes to entice people
to part with large sums of money in expectation of higher returns. The scams are known
as 419 deals, named for the section of the country's legal code that forbids such crimes.
On Monday, the head of Nigeria's Economic and Financial Crimes Commission (EFCC),
Nuhu Ribadu, made the refund of US $17 million to William Richey, a lawyer
representing the defunct Banco Noroeste of Sao Paolo, Brazil.
"By making this restitution to the victim of the scam we also want to send a strong,
unequivocal message that we will no longer harbour such fraudulently acquired funds
no matter where the victim is, " Ribadu said in the statement.
Ribadu said more money recovered from three Nigerians convicted of the scam would
eventually be returned to the bank.
Emmanuel Nwude and Nzeribe Okoli were convicted on Friday by a high court in Lagos
for their role in the scam. Nwude got a 35-year jail term while Okoli was sentenced to 12
years. They are also to forfeit assets worth more than US $121 million.
A third Nigerian, housewife Amaka Anajemba, was convicted in July and jailed for two
and a half years. Anajemba was also ordered by the court to give up cash and assets
of over $48 million, including houses in Nigeria, the United States and Switzerland.
Convictions in the Brazilian bank case represent the government's most significant
victory against fraud thus far.
Nigerian security agencies have redoubled efforts to combat such scams under
President Olusegun Obasanjo, who has long pledged to tackle the rampant fraud that
flourished in the country's long period of corrupt military rule.
Prosecutors alleged that those convicted were part of a fraud ring, including
Anajemba's late husband, that tricked a top official of the Brazilian bank into transferring
funds between 1996 and 2001 into various bank accounts around the world on the
promise he would earn a $13.4 million kickback from a fictitious airport contract.
419 Coaltion Comment: Kudos to the EFCC, it is good to see that
funds are being repatriated in this case. $17 million on the way back,
which is in itself Very significant, of course, leaving $225 million for
future repatriation.
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21 NOV 2005
From Vanguard, a Nigerian newspaper:
$242m scam: Nwude strikes deal, surrenders to EFCC
By Ise-Oluwa Ige
ABUJA Four days before an Ikeja high court convicted and sentenced Emmanuel
Nwude to 25 years imprisonment for participating in defrauding a Brazilian, Mr Nelson
Sakaguchi, a whopping sum of US$ 242million between 1995 and 1998, he had
voluntarily surrendered majority of his choice assets, both in Nigeria and abroad, for
total and final settlement of the case.
Vanguard learnt at the weekend that Nwude, last Tuesday, in Lagos, personally signed
a document titled "Settlement Agreement, " which ceded to Sakaguchi, all his legal and
equitable rights to the choice assets.
A copy of the agreement made available to Vanguard indicated that the trial judge,
Justice Olubunmi Oyewole substantially premised his judgment on the substance of the
'settlement agreement' on forfeiture of the choice assets.
The voluntarily surrendered assets include real estates, a number of expensive cars
and large public quoted shares in a number of blue chip companies.
He signed away his possessions of the assets on November 15, in Lagos when it
dawned on him that he had a very bad case in court and after striking a deal with the
EFCC on the settlement of the case.
While serving his jail term in Lagos prison, he is expected to deliver to Sakaguchi, all
title documents to all the assets voluntarily surrendered by him within a maximum of 15
days.
The ultimatum for the delivery of the titled documents expires November 29, this year,
otherwise the settlement agreement already signed by him would be deemed void.
The Economic and Financial Crimes Commission which prosecuted him in court was the
engineer of the settlement agreement.
According to the agreement, the commission is also expected, in principle, to vet and
okay the agreement especially its compliance within 30 days from the date both parties
(Nwude and Sakaguchi) or their nominees, appended their signatures on the
agreement.
By implication, EFCC is expected to okay the agreement on the surrender of Nwude's
assets before December 14, this year.
The surrendered assets are to be disposed off with the proceeds from the sales
exclusively used to settle a judgment debt entered against Nwude and his accomplices
at a Superior Court of the State of California more than two years ago over the US
$242million scam, the biggest single fraud ever in the world.
In the final judgment off-shore, Chief Emmanuel Nwude Odinigwe was ordered to pay
the plaintiffs in the suit including Sakaguchi, Leo Wallace Conchranc and Leo Wallace
Conchranc (jnr) a whopping sum of US$134,277,500.00.
The court also ordered him to pay interest on the principal judgment sum at the rate
of 7% per annum "from the various dates of conversion until November 30, 2004,
amounting to US$74,903,563.00.
In all, Chief Nwude and his accomplices were expected to pay US $209,181,063.00
amounting to N29, 076,167,757.00k (N29billion). Part of the proceeds made from the
sale of his assets is also expected to be used to pay the legal fees incurred in a
separate action commenced against him (Nwude) and his accomplices before the
English high court of justice, Chancery division over the same US$242million scam.
Probably because Nwude was not operating as a one-man-squad, Sakaguchi is
demanding from him a total sum of US$120,000,000.00 as final and total settlement
of the case made against him.
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19 NOV 2005
From Vanguard, a Nigerian newspaper:
$242m scam: Nwude, Okoli jailed 37 years
By Wahab Abdulah, Gabriel Onyeaku & Faith Ifediora
Two of the three suspects charged for defrauding a Brazilian Bank of 242 million dollars
said to be the biggest scam in history, Chiefs Emmanuel Nwude and Nzeribe Okoli
were yesterday sentenced to a combined prison term of 37 years.
They are also to forfeit 110 million dollars to the Brazilian bank and pay 11.5 million
dollars to the Federal Government. Chief Nwude bagged 25 years while Okoli will
spend the next 12 years behind bars. The third accused person, Mrs Amaka Anajemba
had avoided trial by pleading guilty to the amended charges and was immediately
sentenced to 30 years imprisonment in July this year.
The duo were found guilty on all the 11 offences they were charged with. The terms are
to run concurrently. The convicts changed their plea to guilty after initially pleading not
guilty. They impressed the trial judge who commended them in his judgement.
Chief Nwude, Mrs Amaka Anajemba and Chief Okoli alongside their four companies
were arraigned before an Abuja High Court in 2004 for swindling a Brazilian bank,
Banko Noroeste S.A. of Sao Paulo, Brazil.
Later, the Abuja High Court rejected the case on the ground that it had no jurisdiction
before it was transferred to Lagos High Court presided by Justice Joseph Oyewole.
The matter dragged for over one year with various applications filed by the accused
persons to frustrate the trial.
Delivering judgement, Justice Oyewole convicted them and their companies. They are
also to forfeit their property, including houses and vehicles. Justice Oyewole in his
judgement held: "I have duly considered the submissions of counsel and I must
commend the candour, wit and erudition displayed. This is in line with the best tradition
at the bar. In imposing sentence on the accused persons, the court has noted the fact
that in changing their pleas, valuable time and resources are being saved and is
evidence of remorse and common sense, a point appreciated by the prosecution as
reflected in the present amended charges. "
"A balance must however be arrived at by the court in ensuring that not only is the
financial element which induces and motivates this class of offences is taken care of,
but also impose sanctions that would signpost to society that crime does not pay and
that certain conducts are simply not acceptable. "
It is indeed sad that the activities of the accused persons not only led to the collapse of
a bank in a foreign country but also brought miseries to many innocent people. "
He subsequently read his sentences attached to each charge.
The principal victim of the fraud, Mr. Nelson Sakagushi, a director of the Brazilian bank
who was in Nigeria in an attempt to give evidence in the case expressed satisfaction
with the way the case was concluded by the court. He said "I never doubted the integrity
of the court in Nigeria and I am happy that justice was done in the case. "
Also, counsel in the case, including that of the defence Mr Ricky Tarfa, (SAN), hailed
the court sentence, stating that "it's a well written judgement. "
In his allocutos to the court, Tarfa, said his client was a first offender , who has no criminal
records and that he was sick while having children and aged parents. He urged the
court to temper justice with mercies in its sentence.
**The Nigerian newspaper The Guardian, also covered this story:
Court jails convicts 37 years in biggest fraud
By Mustapha Ogunsakin
THE much-celebrated $242 million fraud trial against a Brazilian Bank, perpetrated by
some Nigerians, came to an end yesterday as a Lagos High Court sentenced the two
accused persons (now convicts) to a total of 37 years' imprisonment.
Besides, the convicts, Chief Emmanuel Nwude and Chief Nzeribe Okolo are to forfeit a
total of $121.5 million, including all their known property, both home and abroad, to the
victims of the fraud (the Bank) and the Federal Government of Nigeria.
It was indeed a trial full of intrigues, which spanned one and a half years. For one full
year, the convicts stalled the trials; changed counsel for about five times; a senior
advocate of Nigeria walked out of court with a bomb scare that threw the whole of the
high court complex, Ikeja into pandemonium on September 13, 2005.
On July 16, 2005 the third accused person, Mrs Martina Amaka Anajemba pleaded
guilty to the charges against her. She forfeited N32 billion both in cash and assets, and
was sentenced to two and a half years of imprisonment.
The convicts created a lot of unpleasant dramas and intrigues that were maturedly
handled by the trial judge, Justice Joseph Olubunmi Oyewole.
The convicts however started getting jittery when on September 13, an employee of
United Bank of Africa (UBA) Mr. Oludayo Ogunleye was expected to give evidence in
court about their transaction with the bank.
During the bomb scare in the court premises, the witness was abducted and the exhibits
he was to tender in court were tampered with.
The bomb scare is currently being investigated by a tribunal of inquiry set up by Lagos
State Governor Bola Ahmed Tinubu with Justice Adebola Adefope-Okojie as the
tribunal chairman. The police authorities had also conducted a similar investigation.
By September 25, an Indian businessman, Mr. Naresh Asnani, standing as a witness,
told the court how he assisted Nwude to launder $127 million through various banks in
Nigeria and abroad.
The last straw that broke the will of the accused however, was the appearance in court
of the former Managing Director of Banco Noroaste Sa, (the bank that was duped), Mr.
Nelson Sakaguchi. They could not believe, in their wildest imagination, that the
Economic and Financial Crimes Commission (EFCC) would be able to bring Sakaguchi
to Nigeria.
Subsequently, a plea bargain situation was reached with the prosecutor, Mr. Rotimi
Jacobs wherein they agreed to plead guilty for a light sentence in addition to forfeit all
their known assets.
In delivering his judgement yesterday, Justice Oyewole said: "A balance must be
arrived at by the court in ensuring that not only is the financial element, which induces
and motivates this class of offences taking care of but also imposes sanctions that
would sign post to society that crime does not pay and that certain conduct is simply not
acceptable. "
He continued: "It is sad that the activities of the accused persons not only led to the
collapse of a bank in a foreign country but also brought miseries to many innocent
people. "
Justice Oyewole thereafter sentenced the first accused (Nwude) to a total of 25 years
imprisonment on a five-count charge.
Nwude is also to forfeit $110 million to the affected bank, forfeit all his assets - property,
cars, shares and money in bank accounts to the victims. He and his companies are
also to forfeit $11.5 million to the Federal Government after which they will wound up.
Okolo was also sentenced to a 12-year imprisonment in addition to forfeiture of all his
property.
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16 NOV 2005
From ThisDay, a Nigerian newspaper:
$242m Scam: Sakaguchi, duped Brazilian, appears in court
By Abimbola Akosile
Trial in a $242million advance fee fraud a.k.a. 419 scam, took a new dimension in an
Ikeja High Court presided over by Justice Olubunmi Oyewole yesterday, when
prosecution's principal witness, Mr. Nelson Sakaguchi, a Brazilian and director in Banco
Noereste Brazil, appeared in readiness to give evidence in the year-old trial. However,
barring any last-minute change, he will do so on Friday, November 18, next adjourned
date.
Sakaguchi, a white, chubby, brown-haired man who sported a black suit on white shirt,
was brought to court in a five-vehicle convoy of bullet-proof jeeps by officials of
Economic and Financial Crimes Commission (EFCC) and heavily-armed mobile
policemen in a tight security cordon, which surrounded the Ikeja courtroom while
yesterday's proceedings were going on.
The star witness was allegedly duped of $24.2 million by three Nigerians including Chief
Emmanuel Nwude (a.k.a Paul Ogwuma Odinigwe) 1st accused, Mr. Nzeribe Edeh Okoli
(3rd accused), Emrus (Nig.) Ltd., Ocean Marketing Co. (Nig.) Ltd. and African Shelter
Bureau (Nig.) Ltd. (5th-7th accused) between 1995 and 1998 through a complicated wire
transfer system involving both local and foreign banks and some foreigners.
However, both Amaka Anajemba (Mrs.) and Fynbaz (Nig.) Limited (2nd & 4th accused
respectively), initially charged alongside above suspects, pleaded guilty to a fresh 4-
count charge on July 15, and were subsequently sentenced to prison terms and fines,
with their names deleted from an amended information filed by the prosecutor, EFCC.
When the matter came up before Justice Oyewole yesterday morning, Chief Olisa
Agbakoba, SAN, lead defence counsel for Nwude, was again absent in court (which led
to an adjournment last week), although Mr. Rickey Tarfa, SAN, announced appearance
for the 1st accused and sought court leave for some time to allow him acquaint himself
properly with the matter; which prompted the court to grant a 30-minute recess.Although
Agbakoba was earlier scheduled to cross-examine Mr. Naresh Asnani, an Indian
business-man (PW6) who allegedly helped Nwude launder around $127 million through
his bank accounts, both Tarfa and Mr. Adeshina Ogunlana (Okoli's counsel) declined to
cross-examine Asnani despite his previous lengthy testimony. Lead prosecution
counsel, Mr. Rotimi Jacobs thereafter called upon Sakaguchi as the next witness,
though the matter could not go on since he (Jacobs) told court he needed two days to
confer with his star witness.
Sakaguchi, on a business trip to Nigeria in 1994, was allegedly introduced to the
accused, by his friend Dr. Hakim Ukeh, an Enugu-based businessman. Two of the
suspects allegedly claimed that they control the Central Bank of Nigeria (CBN). Nwude,
a major shareholder at Union Bank of Nigeria Plc, posed as Mr. Paul Ogwuma, then
Governor of CBN, while Amaka's husband, Ikechukwu Anajemba posed as Alhaji
Mahey Rasheed, who was the CBN Deputy Governor in charge of foreign operations in
1995.
The unsuspecting Brazilian was deceived into believing that the suspects won a
contract in Nigeria and was asked to send money to facilitate the supposed contract,
which was done in 8 installments, beginning with a first installment of $1.2 million on
August 9, 1995 and last payment of $1.35 million in 1998.
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