Kelechukwu Mbagwu, the Chief Executive Officer of CMB Building Maintenance & Investment Company Limited, is set to be arraigned on April 30 at the Federal High Court in Lagos over allegations of a N1,026,968,433 fraud. The charges, brought forward by the Police Special Fraud Unit (PSFU) in Ikoyi, Lagos, include conspiracy, obtaining by false pretence, and fraudulent conversion of funds.
Allegations Against Mbagwu
The charges assert that in 2019, Mbagwu and his company misrepresented ownership of a property in Oniru, Victoria Island, Lagos, to Access Bank, securing a loan exceeding N1 billion. It is further alleged that the property had already been sold to a third party, a fact concealed from the bank. The loaned funds were purportedly diverted for personal use.
Legal Framework
The alleged actions contravene Section 8(i)(a) and Section 1(i)(a) of the Advance Fee Fraud and Other Fraud Related Offences Act, No. 14 of 2006, punishable under Section 1(3) of the same Act. Additionally, they violate Section 18(2)(b)(d) of the Money Laundering (Prevention and Prohibition) Act, 2022, punishable under Section 18(3) of the Act.
Previous Legal Challenges
This is not Mbagwu’s first encounter with fraud allegations. In December 2020, he was arraigned before the Lagos State Special Offences Court for allegedly obtaining N25 million under false pretences. The Economic and Financial Crimes Commission (EFCC) accused him and his company of defrauding an individual by falsely offering two residential plots in Pearl Garden Estate, Sangotedo, Lagos. Mbagwu pleaded not guilty and was remanded in EFCC custody pending trial.
Homeowners’ Accusations
In 2019, homeowners in Pearl Garden Estate and Pearl Nuga Park Estate, Sangotedo, Lagos, petitioned the EFCC, accusing CMB and Mbagwu of fraudulently mortgaging their properties to secure unauthorized bank loans. The residents claimed that homes they had fully paid for were used as collateral without their consent, leading to attempts by banks to repossess these properties.
Upcoming Court Proceedings
The arraignment of Mbagwu and his company is scheduled for April 30 at the Federal High Court in Lagos. This case underscores the critical need for transparency and integrity in real estate transactions, highlighting the severe consequences of fraudulent practices in Nigeria’s property sector.
