Microfinance Bank MD enmeshed in N11.4bn fraud


The Economic and Financial Crimes Commission, has arrested one Michael Obasuyi, for alleged fraud to the tune of N11.4bn.

The suspect, according to the EFCC, had written a petition against a mobile company in March 2018 but in a dramatic twist, the mobile firm wrote a counter-petition to the EFCC thereby causing the commission to probe him.

The EFCC said in a statement that Obasuyi, who is the Managing Director, Platinum Multi-purpose Cooperative Society Limited and Smart Micro Limited, was found to have allegedly perpetrated several acts of fraud.

Smart Micro was alleged to have approached the mobile company in 2012 for the deployment of bulk purchase solution called “Corporatepay” to facilitate payment of salaries of Delta State employees in microfinance banks.

It was also alleged that the company configured an additional outbound fund transfer solution called “Fundgate” in 2017, which required Smart Micro to maintain a pre-funded settlement account with a first generation bank for settlement of account it had initiated.

However, the company further alleged that the bank, sometime in March 2018, revealed that the settlement account was in debit of N11, 498,944,038.29.

The EFCC said, “In his statement to the commission, confessed to have committed the crime, stating that he created fraudulent and imaginary monies through the aid of Fundgate financial application from the company.

“The commission, in the course of investigation, has recovered a paper version of the programme called MicroSwitchServer1, which he allegedly used to create and post the imaginary monies.

“He also admitted to have diverted to his personal use the sum of N7.5 billion out of the total sum of N11.4 billion”

The commission said it had  so far recovered the sums of N2.9 billion, $37,992 and €18,538 found in Obasuyi’s accounts in various banks in the country.

It further stated that a total of 20 properties located in various parts of Edo, Rivers and Lagos States and Abuja, worth several millions of naira, had been traced to Obasuyi, which were acquired with proceeds of crime.

The anti-graft agency added, “Obasuyi, who also admitted to have purchased 134 buses from the proceeds of crime, runs the popular Platinum Cruise Transport Company.

“He will soon be charged to court as soon as investigations are concluded.”

“He will be brought to court on a later day.”

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Source: Newsroom