Economic and Financial Crimes Commission on Wednesday accused a former Managing Director of Finbank Plc, Okey Nwosu, and his co-accused of using “paper companies” to manipulate the bank’s shares. Two EFCC witnesses, Anafi Mohammed and Shittu Bello, who made this allegation at a Lagos High Court in Ikeja during a session of the trial of Nwosu and others, said the accused persons bought the bank’s shares for themselves with the bank’s money.
Nwosu and the other accused are being tried for allegedly stealing N10.9bn belonging to Finbank (now First City Monument Bank Plc).
The other defendants, who are former directors of the bank, are Dayo Famoroti, Danjuma Ocholi, and Agnes Ebubedike.
Muhammed, who is the Head, Compliance and Enforcement Department, Financial Intelligence Unit of the anti-graft agency, testified that he investigated the activities of the former bank chiefs.
The witness, who was led by EFCC counsel, Mr. Rotimi Jacobs, alleged that the accused created seven companies known as Special Purpose Vehicles for the purpose of purchasing the bank’s shares.
He said, “The internal account of Finbank was debited and the money was transferred to the accounts of two stock brokering firms, Springboard Trust and Investment Ltd. and Integrated Securities Ltd.
“Approvals were given to the firms to buy the bank’s shares and these approvals were usually signed by Nwosu or Famoroti.
“The shares were bought in the name of some companies which were fronts for the bank.
“They were paper or share companies used by the bank as SPVs.”
On his part, Bello, a Bank Examiner from the Nigerian Deposit Insurance Company, testified that the accused violated the provisions regulating banking activities in the country.
Bello, who was also led in evidence by Jacobs, said investigation by a his team of inter-agency investigators revealed that there were some irregularities in the bank’s transactions.
Justice Lateefat Okunnu adjourned the matter till Thursday (today).
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