Fraud: EFCC secures court order for bank to forfeit unclaimed N1.7 billion to FG

The Economic and Financial Crimes Commission (EFCC) has seized
about N1, 260, 000, 000 from Heritage Bank and Secure Electronic
Technologies Limited.

Other forms of cash finally forfeited to the government are
$327, 132.35, £167.85 and €327.90.

According to the anti-graft commission, the seizure of the cash
followed a court order granting final forfeiture of the sum.

A document obtained by our reporter said: “Sequel to the
investigation of the unlawful activities of Heritage Bank Plc, the
sum of N1,260.000,000.00, $327,132.35, £167.85 and €157.90 proceeds
of the Bank’s unlawful activities were forfeited to Federal
Government Nigeria in suit NO: FHC/L/CS/1349/2018 (copy attached
and marked A-A6).

“The funds were recovered and registered with the Commission as
follows; N300,000,000,00 – 1485/2017; N245,000,000,00 -1072/2018 ;
N115,000,000.00- 700/2018; N100,000,000,00 – 234/2018 ;
N120,000,000.00- 852/2018; N120,000,000.00 -1021/2018;
N157,000,000.00 -1524/2017; N10,000,000.00- 1421/2017; N
8,000,000.00- 246/2018; and N85,000,000,00 – 1311/2017

“Also see attached, marked ‘B-B3’ transfer instruction for the
sum of $327,132.35, £167.85 and €327.90 to Central Bank of
Nigeria.

The document said the EFCC on September12, 2018, praying for the
following order:

“A final order of the court forfeiting to the Federal Government
of Nigeria the sums of N1,260,000,000.00, $327,132.35, £167.85 and
€157.90 found by the Commission which funds are reasonably
suspected to be proceeds of unlawful activities.

“And for such further or other orders as this Honourable Court
may deem fit to make in the given circumstances.”

A judgment on November 13, 2018 on the EFCC’s application by
Justice Chuka Austine Obiozor said: “Upon reading the affidavit in
support with all the exhibits attached thereto sworn to by Peter
Chimdinma, Male. Christian, Nigerian citizen and operative of the
E.F.C.C, 15A Awolowo Road, lkoyi – Lagos State and written address
filed at this Court Registry, Ikoyi-Lagos, it is hereby ordered as
follows:

“ An Order for final forfeiture of the sums of money to with:
N1,260,000,000 ; $327, 132. 35 (US) ; £167.85; and €157.90 found by
the Economic and Financial Crimes Commission in the custody of the
Respondents, being sums reasonably suspected to be proceeds of
unlawful activities, captured in account numbers 5133316817,
2100000477. 2100000446. 2100000484, 2100000491. 2100000453,
2100000460, 5100000499 and 5100005002 be and are hereby forfeited
to the Government of the Federation of Nigeria.”

The trial judge, Justice Obiozor, said nobody of organization
disputed EFCC’s application for the forfeiture of the cash.

He added: “Now, I have carefully appraised the affidavit in
support of the motion for final forfeiture, which is not
controverted. I note that the position of the law is that the
absence of a refutal of the facts therein by the Respondents,
tantamount to admission on their part of the depositions.

“By the special provisions of section 44 (2) (b) of the
Constitution of the Federal Republic of Nigeria, 1999 (as amended),
the Constitution makes it permissible for properties to be
forfeited in a non-conviction based forfeiture process in
accordance with the law.

“The enabling law in this respect is the Advance Fee Fraud and
other Fraud Related Offences Act, 2006, which in section 17 allows
the Economic and Financial Crimes Commission to seek an order for
forfeiture of properties reasonably suspected by the Commission to
be proceeds of unlawful activities.

“This non-conviction forfeiture model is activated by way of
action which is sui generis. See La-Wari Furniture and Baths Ltd.
V. FRN (2018) LPELR-43507 See also Dame Patience Jonathan V. FRN
(2018) LPELR-43505.

“The key point to underscore here is that the Commission has a
duty to demonstrate prima facie proof before the court to discharge
the onus of proof on it. Thereafter, the evidential burden of
asserting the contrary, namely, that the properties concerned are
not proceeds of unlawful activity shifts to the Respondent. See
La-Wari Furniture & Baths V. FRN, supra.

“I have appraised the evidence adduced in the Affidavit of the
Applicant inclusive of Exhibits “EFCC1” to “EFCC 16c”.

“ The Court is satisfied that the Applicant has made out a prima
facie case in keeping with eatablish principles-see the Supreme
Court in Felimon v. E.F.C.C (2018) 7 N W L R (Pt. 1617) 55, 67; to
justify the grant of the final order for forfeiture sought.
Accordingly, the Applicant’s claim succeeds.”

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