After Losing N1.13 Billion: Staff Scam Lotus Bank Again Over N300M

There is no reprieve yet for LOTUS Bank Limited as  the bank has again been defrauded to the tune of N336,993,863.35 by one of its staff after been suffer a loss of N1,134,491,604.31 (one Billion one hundred and thirty-four million four hundred and ninety one thousand six hundred and four Naira thirty one kobo about two months ago.

       According to an affidavit sworn to  by a fraud investigation officer of the bank,  Gbenga Ojerinde, filed and argued before the court by a Lagos lawyer Efe Eze Iyamu.

  The deponent avers that LOTUS BANK LIMITED discovered suspicious Mudarabah profits were paid to some accounts of the customers with the Bank and upon conducting a comprehensive review from January 2023 to May 2024, uncovered fraudulent activities by a staff member, Abdulkarim Arome Mohammed.

    Mudarabah deposits are defined as the net average balance for all types of Mudarabah deposits (Savings or term deposits) standing in the bank’s books at the end of the month

    Abdulkarim Arome Mohammed, a staff in the Financial Control Department, was alleged to have abused his system profile and privilege and fraudulently allocated profits to three undeserved accounts: one belonging to his wife, Khadijah Aliyu Shuaib (FINCON Officer in charge of advising on profit distribution), Peter Daniel and Emmanuel Ocheja Odogwu.

   The total sum involved in the fraudulent suspicious profit payment for the three customers are in total sum of  N336,993,863.35 (Three Hundred and Thirty-Six Milion Nine Hundred and Ninety-Three Thousand Eight Hundred and Sixty-Three Naira, Thirty-Five Kobo).

  A review of the utilization of Peter Daniel’s account revealed that the outflow were sent to his personal accounts in  two banks 

   A review of Khadijat Aliyu Shuaibu account revealed that majority of the funds were moved-to a company named CRESCO OIL & GAS Limited.

      That Cresco Oil & Gas from enquiries is owned and managed by the trio of Abdulkarim Mohammed, his wife (Khadijat Shuaibu Aliyu) and Peter Daniel (second beneficiary of unusual profit distribution)

   The account names and amounts fraudulently allocated to each of and all of the beneficiaries’ accounts in the Respondents Banks are filed before the court. 

      Immediately upon discovering the fraudulent activities, the bank notified the Nigeria Inter-Bank Settlement System Plc (NIBSS) which, in turn notified the Respondents banks to place holds on the accounts and reverse the funds.

   while some Respondents banks have complied partially, others have not made any reversals of the funds received as a result of the fraudulent activities.

    Consequently the bank urged the court to grant an order placing post no debt, the individual holders of the various accounts into which the funds were electronically transferred due to the fraudulent activities.

    The bank will suffer irreparable loss if the orders are not granted as the funds may be dissipated by the account holders.

    The bank undertakes to indemnify all the Respondents financial institutions against any liability they may suffer by the grant of this application if it is established that the application ought not to have been granted in the first place.

     The presiding Judge,Chukwujekwu Aneke,after hearing Efe Eze-Iyamu counsel for LOTUS bank Limited moved in terms of the motion paper ordered that the 28 financial institutions listed before the court to immediately place a post- no debit restrictions on all the beneficiaries listed in the list annex to the application to the extent of the amount reflected in the said list being the amounts that the listed financial customers received from the fraudulent credit of the said accounts.