By Ken Afor
The Lagos Division of the Court of Appeal has affirmed the verdict of the Lagos High Court, which convicted two Keystone Bank staff, Anayo Nwosu and Olajide Oshodi, to five years in prison for their alleged involvement in an N855 million fraud case.
In two distinct rulings, the appellate court upheld the lower court’s decision, asserting the defendants’ culpability in corruption charges.
In her lead judgment, Justice Folasade Ayodeji Ojo ruled that the two appeals lodged by Nwosu and Oshodi challenging Justice Kudirat Jose’s verdict were without merit.
Justices Olukayode Bada and Paul Bassi, who were part of the panel, concurred with the lead judgment.
The appellate court addressed the three issues raised for consideration, ruling in favor of the Economic and Financial Crimes Commission (EFCC).
It would be recalled that on December 9, 2019, Justice Jose, convicted Nwosu and Oshodi on an amended 15-count charge, including conspiracy and obtaining money by false pretense, brought forth by the EFCC.
The judge imposed five years imprisonment for counts 1, 3, 4, 7, 9, 10, and 13 of theft on each defendant.
Jose also found Ashok Israni, an Indian businessman, along with his company, NULEC Industries Limited, and Keystone Bank Limited, guilty in her ruling. The company and the bank were instructed to pay a fine of N20 million to the federal government for counts one, 10, and 13.
However, four months following their conviction, they were reportedly released from Kirikiri prison by officials, purportedly under the directive of the Lagos government, despite their appeals still pending before the appellate court.
Dissatisfied with the verdict of the lower court, the duo appealed to the higher court, contending that their right to a fair hearing was violated due to the introduction of the further amended charge after the close of evidence.
They also argued that the lower court exceeded its jurisdiction by imposing a punishment exceeding the maximum penalty prescribed by Section 390 of the Lagos State Criminal Code Law, Cap. 17, Vol. 2, Laws of Lagos State, under which they were charged.
Furthermore, the appellants asserted that the transactions leading to their conviction were purely civil and involved third parties distinct from them.
The EFCC, represented by its lawyer Rotimi Jacobs, contended that the appellants failed to challenge the further amended charge during the trial.
Additionally, Jacobs argued that the Criminal Code Law of Lagos State allows the court to sentence a convict to up to 5 years imprisonment if the stolen property is valued at N1,000 or more.
In her primary judgment, Justice Ojo emphasized that the trial court followed the legal procedure for amending a charge. She further ruled that the appellants’ argument alleging a breach of their right to a fair hearing due to the charge amendment lacked merit.
The Justice also affirmed that the amount involved in the charge exceeded N1,000 and comprised criminal allegations of “stealing by conversion, publishing of false statement, etc., which are offences clearly defined under the Criminal Code Law of Lagos State.”
She also stated, “I have carefully examined the appeal record, and I agree with the lower court that the ingredients of counts one and three of the Amended Information were established by the first respondent (EFCC).
“It is not in doubt that the Appellants introduced the private placement of the shares of the fourth respondent (Keystone Bank) to the 11th prosecution witness (complainant), which made him part with a considerable sum of money.
“As rightly submitted by the first Respondent, the fourth Respondent was to retain the proceeds realised through the private placement into an interest-yielding account before the allotment of the shares, and the shares certificate must be sent to the successful applicant within 15 working days from the date of allotment, and unsuccessful applicants were to get their money returned to them within ten working days of the date of allotment.
The judge added, “The appellants received the cheque of N395 million from the complainant in his office, where the instruction for issuing bank drafts in the sum of N285 million and N110 million was initiated by him.
“The draft of N285 million was paid into the current account of the fourth Respondent on 14th July 2008. On 15th July 2008, the fourth Respondent paid the sum of N19,950,000 to Drillcom Investment W/A Ltd. The Appellants benefitted from this commission. The ingredients of Counts 1 and 3 were established before the lower court, and I so hold.
“I firmly believe that the Appellants squarely come within the definition of a promoter as contemplated under Section 436(b) of the Criminal Code Law, and I so hold.”
The judge emphasized that the appellants induced PW11 (the complainant) into “this transaction, over which their bank commended them.”
“I resolved this issue against the Appellants as the lower court was correct to have convicted and sentenced the appellants on counts 10 and 13 of the amended information.
“Having resolved all the three issues in this appeal against the appellants, the inevitable conclusion is that the appeal lacks merit and deserves to be dismissed. The instant appeal is dismissed for lack of merit. The Judgment of the High Court of Lagos State, Ikeja Judicial Division in SUIT NO. ID/112C/2012 is at this moment affirmed,” Justice Ojo held.
