Ex Keystone Bank Boss Francis Atuche Back In Court Over N125billion Fraud

The Economic and Financial Crimes Commission (EFCC) on Tuesday re-arraigned former Managing Director of Bank PHB (now Keystone Bank), Mr Francis Atuche at the Federal High Court in Lagos.

He was charged along with a former defunct Spring Bank Plc Managing Director, Mr. Charles Ojo on an amended 45-count charge bordering on alleged N125 billion fraud.

The re-arraignment was caused by the transfer of Justice Saliu Saidu to another division after the trial had commenced.

The case will begin afresh for the fifth time before Justice A. Faji.

Atuche and Ojo have been standing trial since 2009 over allegations of acquiring Keystone Bank’s shares using depositors’ funds.

They pleaded not guilty to the 45 counts of conspiracy, reckless granting and approval of loans and money laundering, between September 1, 2006, and 2009.

Atuche was also accused of applying N3.5billion being proceeds of unlawful loans granted to   Tradjek   Nigeria Limited, a subsidiary of Futureview Financial Services Ltd, in payment for his acquisition of shares of Bank PHB using various companies as fronts with an intention to conceal the ownership of the loans.

EFCC said he collaborated with different companies to conceal the genuine origins of the N3.5billion used to acquire the bank’s shares.

The alleged offences, all of which Atuche denied, contravene Section 14(1) of the Money Laundering (Prohibition) Act and Section 516 of the Criminal Code Act Cap 38, Laws of the Federation of Nigeria 2004.

Reckless granting of loans contravene Section 7(1) (b) of the Advance Fee Fraud and other Fraud Related Offences Act and punishable under section 7(2)(b).

The defendants pleaded not guilty.

Ojo’s lawyer, Mr Osahon Idemudia, urged Justice   Faji   to allow the defendants continue on the bail terms granted them on November 9, 2009, by Justice Akinjide Ajakaiye, before whom they were first arraigned.

Justice   Faji   granted the prayer, holding that the defendants shall continue on the N50million bail with one responsible surety each.

The surety, he said, must deposit the Certificate of Occupancy of his landed property either in Ikoyi or Victoria Island.

Justice   Faji , however, said the sureties must update their tax clearance within 14 days.

He adjourned till February 23, March 16 and 17 for trial

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