Tale of 58 Ponzi schemes and 30 signs of scam to watch – Stay Alert! - ITREALMS

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Remmy Nweke

Preamble:

As the weekend and holiday approach, it's essential to be aware of the dangers lurking in the financial world in the last few days. Though, the Economic and Financial Crimes Commission (EFCC) had issued a warning about 58 Ponzi schemes operating in Nigeria, it's crucial to understand the risks involved, even as many schemes seem to debut daily.

Noteworthy is that in the last seven days, about two known ponzi schemes namely Cyrpto Bank Exchange (CBEC) and ADK Services have collapsed with trillions of hard earned Naira developing wings.

EFCC, Interpol after CBEX behind N1.3trn Nigeria scam - ITREALMS

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The Economic and Financial Crimes Commission (EFCC) has estimated the sum of N1.3 trillion as what Nigerians lost to fraudulent online investment platform, CryptoBank Exchange (CBEX), reports ITREALMS.

This is coming as InterPol has joined forces to hunt leaders of CBEX in the Nigeria scam.

ICPC arraigns man over alleged employment scam - ITREALMS

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The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has arraigned one Umar Abubakar, for offences bordering on alleged forgery and employment scam, reports ITREALMS.

Abubakar was docked before Honourable Justice Hafsat Abdulrahman of Adamawa State High Court 1, sitting in Yola, the Adamawa State capital.

Ekweremadus: Telemedicine, avoidable organ scam & medical tourism - ITREALMS

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Whilst decrying the Ekweremadus’ saga, ITREALMS’ REMMY NWEKE examines local options as the recent feat of the Federal Medical Centre (FMC) Umuahia on its 11th successful kidney transplant comes to mind, moreso with growing technologies and broadband penetration in Nigeria.

11th kidney transplant @FMC Umuahia:
Barely five days after the former Deputy Senate President, Senator Ike Ekweremadu, 60, his wife Beatrice, 56, and Dr Obinna Obeta, 50, were found guilty of organ trafficking in the United Kingdom (UK) and sent to prison, while awaiting sentence on May 5; a team of surgeons from the Federal Medical Centre (FMC) Umuahia, have successfully completed its 11th kidney transplant in the south-eastern State of Abia in Nigeria, the God’s own state.

For the avoidance of doubt, the distance between Enugu, the capital of Enugu State, where the Ekweremadus hails from is about 102 kilometres (km), whereas the road distance is 123.8 km. Also, it would take some 2 hours’ 31 minutes only drive, which is about 144 (km) from Enugu to the FMC, Umuahia, along Aba Road. Whilst from Abuja, the Federal Capital Territory (FCT) of Nigeria to London in the United Kingdom is a full day journey and could take, at least, 6 hours’ 30 minutes for a non-stop flight using British Airways, Lufthansa, Air France among others. And connecting flights could take up to 8 hours 55 minutes. The gap between Nigeria and UK or any other parts of the world could be condensed with deployment of Information and Communications Technologies (ICT) through what is known in health sector as telemedicine.

Stamp duty: Mega scam under Buhari regime says Sowore - ITREALMS

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The 2023 Presidential candidate of the African Action Congress (AAC), Mr. Omoyele Sowore has declared that the stamp duty scam is the biggest financial scam in recent times, reports ITREALMS.

Sowore who was reacting to the alleged stamp duty fraud worth N89 trillion, about ($200.1 billion) by a member of the House of Representatives, Gudaji Kazaure, said its a mega scam under the leadership of the President of Nigeria, General Mohammadu Buhari, retired.

Hushpuppi saga and Business Email scam - ITREALMS

Commentary@ITREALMS ... making leadership SENSE with digital news!

Trending Hushpuppi:

The Hushpuppi Saga is a trending story that many people have shared severally on different social media platforms around the world. It had also generated a lot of controversies. However, we need to ask ourselves a very important question about this trending story.

Why is it that so many victims fell for the scam?

The answer is simply because the defrauded victims had little or no knowledge about "Business Email Compromise Scam" which was the strategy used by Raymond Abbas aka "Hushpuppi".

What is Business Email Compromise?
Business Email Compromise (BEC) is a kind of fraud in which cyber criminals hack into a corporate email account and impersonate the real owner of the email account in order to lure the company, its employees, partners or customers into transferring money or sensitive information to the cyber criminals or divert their payments to another account created by the cyber criminals.

How it works:

The cyber criminals will do a thorough research about the unsuspecting companies through their profiles, websites, social media posts, YouTube channels, journals, press release etc.

Alternatively, they will create an email address that is very similar to that of the unsuspecting companies' email address. In some cases they will disguise as the director, partner, lawyer or customer of the targeted companies and use their identities to obtain personal or sensitive information through email.

Research revealed that Business Email Compromise Fraud had already cost the United States Businesses at least $1.6 billion in losses from 2013 till date.

A typical example of a Business Email Compromise (BEC) was recently reported in the news and has gone viral on social media with thousands of views within few days of the report. In the report, a 38-year-old Nigerian, Raymond Abbas aka Hushpuppi was arrested along with 11 others by the Dubai Police. 

They were accused of being involved in a "Business Email Compromise" and other forms of internet fraud in which 1,926,400 victims were said to have been targeted by the syndicate.

The major reason why so many unsuspecting individuals and companies fall victim to Business Email Compromise Fraud almost every day is because they lack vital information about it.

How can you protect yourself or your company against Business Email Compromise (BEC) Scams?

You must educate yourself about the warning signs and other safety tips.

Warning Signs of a Business Email Compromise Fraud:
1. It comes with a sense of urgency. e.g. urgent payment, urgent response, urgent subject matter etc. The fraudsters want their victims to respond quickly before they can think clearly.

2. Sudden change in email address. e.g. When you notice a sudden change in the email address of the CEO, customer, lawyer or staff of the company you are dealing with, be suspicious.

3. Sudden change in website: When you notice a change in the website of any company before, during or after a transaction, you should be suspicious.

4. Sudden change in contact telephone number.

5. Sudden change in bank account details.

6. Introduction of third party email into the business transaction.

How to avoid Business Email Compromise Fraud:

1. Individuals and companies should educate themselves on how to avoid Business Email Compromise Scam.

2. When a change in email address, phone number, bank account details, website etc is noticed, report immediately to your bank or anti-fraud agencies.

3. Always use firewall, antivirus and other tools to scan your computers, mobile phones and other devices to prevent malware infections.

4. Before you provide any sensitive, personal or company's information on any website, make sure you verify the authenticity of the website.

5. If you receive an email that notifies you of a change in the mode of payment or a change of bank account details, make sure you investigate thoroughly by contacting the supposed receiver of the payment via another channel. e.g. phone calls, courier services etc.

6. If you are a victim of Business Email Compromise Scam, report immediately to appropriate authorities for urgent action. e.g. your bank, police or anti-crime organisations.


*Contributed by Rotimi Onadipe, +234-8169121819; email: onatechconsult@gmail.com

Alleged N170m contract scam: EFCC clears TD staff, Zinox - ITREALMS

ITREALMS:

The Economic and Financial Crimes Commission (EFCC), just like the Nigerian Police, has cleared Zinox Technologies Ltd., Zinox Telecoms as well as Technology Distributions Ltd. (TD) and its staff of any infraction based on a series of petitions written by Benjamin Joseph, the owner of Citadel Oracle Concept Limited, a company based in Ibadan, claiming that his authorized agent, Princess Kama had connived with staff of TD, Sub-Saharan Africa’s biggest ICT distribution company, to use his company Citadel without his knowledge to secure a contract for the supply of HP laptops from the Federal Inland Revenue Service (FIRS).

Absolved of any wrongdoing by both the Police and the EFCC are Company Secretary/Legal Adviser, Zinox Group and TD, Chris Eze Ozims; Managing Director, Operations, Mrs. Shade Oyebode and Head of Finance, Mr. Charles Adigwe, both of TD., thereby vindicating the long-held position of the company on the innocence of its staff in the series of media campaign waged by Mr. Joseph through Premium Times, an online news medium.

The issue arose from a business transaction between Citadel Oracle Concept Limited (Mr. Joseph’s company) and their appointed staff/representatives, (Princess Kama and Chief Igbokwe), when they won a contract for the supply of HP laptops to the FIRS in 2013. Having no funds to execute the contract, his appointed staff/agents approached TD, an authorized HP distributor to supply them the laptops on credit pending payment by the FIRS.

In view of previous bad experience and in order to avoid exposing the business to bad loans, TD had insisted that its staff, Mr. Ozims and Mrs. Oyebode, would have to be signatories to an account opened by Citadel Oracle Concept Ltd. for the purpose of disbursement of funds as regards the contract and as security for the laptops supplied on credit. Immediately the contract was executed and payment effected by the FIRS, TD had deducted the pre-agreed invoice sum of the laptops and had its staff resign as signatories to the said account – a similar procedure applied to other customers who had similar contract with FIRS for the supply of similar HP laptops at the time.

According to Mr. Joseph, while payment was made using his company, no laptops were delivered to the FIRS. However, it has emerged that a disagreement arose when he was trying to share the profit earned from the transaction with Princess Kama, which involved the intervention of legal luminary, Afe Balalola SAN. However, when Mr. Joseph could not reach an amicable settlement with Princess Kama, he changed the narrative - claiming that he had no knowledge of the transaction.

He first petitioned EFCC Lagos in 2013, who investigated and found out that the systems were fully delivered, deployed and signed for by top Management staff of FIRS. The EFCC also confirmed that Mr. Joseph was aware of the contract as he personally submitted a signed letter of authority along with a copy of his international passport and other corporate documents of his company, authorizing Princess Kama to act on his behalf. The letter signed by Mr. Joseph also accepted the contracts from FIRS on behalf of Citadel, thus rendering his subsequent denial of any knowledge of the contract suspicious.

Disregarding the investigations at the EFCC Lagos based on his petition, Mr. Joseph, again, petitioned the Special Fraud Unit of the Nigerian Police (SFU), Milverton Road, Ikoyi, in 2013, against Princess Kama and her uncle, Chief Igbokwe, and added TD, the company that supplied the computers to them on credit. Mr. Joseph claimed that his company was used without his knowledge and that the account opened by his company in Access bank was not to his knowledge and that, his signature was forged on a board resolution and the letter of authority to Princess Kama. However, after full investigation by the Police Special Fraud Unit, they confirmed that all computers with listed serial numbers were duly supplied and paid for by the FIRS. The Police also subjected the documents bearing Mr. Joseph’s signature to forensic analysis and confirmed that the signature was actually his.

Mr. Joseph ignored the report of the investigation by the Police SFU and went ahead to petition the Nigerian Police (Force CID) Headquarters, Abuja, in 2014, without disclosing previous petitions and investigations on the same matter. The-then Inspector-General of Police, Solomon Arase instructed a detailed investigation, and only for his team of investigators to discover that there had been several country-wide investigations on this matter. The investigations by the Force Headquarters also came to the same conclusion as the SFU Report. It was this deceit that informed the Police to commence criminal proceedings against Mr. Joseph for false and misleading information and waste of Police resources and time, in Charge No. CR/216/16 (IGP vs. Benjamin Joseph), at the FCT High Court, Abuja.

In what may appear to be calculated efforts to subvert the course of justice, Mr. Joseph had then resorted to several petitions to the Attorney General of the Federation (AGF) which led to a review of the case file. On February 10th 2017, a letter (Ref: DPPA/PET/397/16) from the Office of the Director of Public Prosecutions (DPP) approved that the Police should continue with the prosecution of Mr. Joseph

A few months after the inauguration of the current administration, Mr. Joseph again petitioned the Office of the Vice President, Prof. Yemi Osinbajo on the same facts, insinuating that his company was used to defraud the Federal Government of Nigeria of over N200m in that no computers were supplied to the FIRS even though payment was made. The VP duly instructed the EFCC Chairman to investigate and report back.

The EFCC launched a nationwide investigation and confirmed all systems were supplied. The report, in the main, noted that the Federal Government was not defrauded in any way. In their report, they exonerated Technology Distributions Ltd. from any fraud, as the money received by the company was the actual invoice value of the computers supplied to Mr. Joseph’s company, Citadel, on credit, through his appointed agents. 

The investigations and report also exonerated the staff of Technology Distributions Limited, including Mr. Ozims, the company secretary, Mrs. Oyebode, the-then Executive Director and Mr. Adigwe from any fraud. The said staff of TD were listed as prosecution witnesses in the criminal case filed by the Police against Mr. Joseph, with Mr. Ozims having already testified as a witness for the Prosecution. This is a vindication of the innocence of the staff of TD. It was also noted that Zinox Technologies Limited and its Chairman had no involvement, whatsoever, with the transaction, following which the Office of the DPP again directed the Police to continue with Joseph’s prosecution through another letter (Ref: DPPA/ADV:1009/14) dated 7th May 2018 and addressed to the Inspector-General of Police.

Princess Kama, Mr. Joseph’s appointed representative, had further admitted in all her statements and testimonies on oath in court that she submitted the board resolution used in opening the account at Access Bank Abuja, together with Mr. Benjamin Joseph and not in company of any staff of TD. She further wondered why Mr. Joseph has been dragging the names of TD and Zinox and their staff into the issue, when these are innocent people who graciously supplied the laptops to them on credit, which was delivered to FIRS.

Mr. Joseph had subsequently intensified a media campaign which saw the names of the Chairman, Zinox Group, Leo Stan Ekeh repeatedly included in a series of publications by Premium Times, which incidentally remained the only medium out of over 30 media houses that investigated the case and continued to publish Mr. Joseph’s claims, without recourse to verifying from the EFCC and the Police despite having access to these authorities, further fuelling suspicions of an attempt at arm-twisting or blackmailing the company to cave into pressure from Mr. Joseph.

The series of allegedly defamatory publications saw the medium slammed with a N2billion defamation suit by Zinox. Joined in the suit FCT/HC/CV/1680/2017 filed by the law chambers of Chief Chukwuma Ekomaru (SAN) are Premium Times Services Limited; the medium’s Publisher/Chief Executive Officer, Dapo Olorunyomi; Managing Editor, Musikilu Mojeed and Bassey Udo, a reporter/Head, Business and Economy Desk who authored the publications.

In a telephone chat, Gideon Ayogu - Head of Corporate Communications at Zinox held that Mr. Joseph and his collaborators knew the truth from the beginning but erroneously assumed that embarking on a media trial or blackmail will make Zinox succumb to the unfounded demands of Mr. Joseph.

“Premium Times keeps publishing that a prima facie criminal case was made by the Police and the EFCC in their reports against the staff of TD and Zinox. We have challenged them severally to publish any evidence of these allegations or reports. Till date, they failed to produce any such evidence, but keep publishing spurious stories handed down to them by Mr. Joseph.

“We, however, made it clear to them in a widely-read advertorial that this is against our corporate culture and requested them to publish proof of any infraction by the company or its staff. Again, they are yet to do this more than one year after. It is unfortunate because neither Zinox nor TD is desperate for cash for it to cheat any individual or company, as the case may be. I can confirm, and you can check with bankers in Nigeria, that this is one Group, which in her 32 years of existence is not indebted to any bank. It is a structured organization run strictly on the integrity of the investors,” he concluded.

Uboshe Uboshe/Editor

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Internet fraudster bags 1 month jail over N1.5m bitcoin scam

ITREALMS:

The Enugu State High Court has sentenced an internet fraudster, Omokaro Osamudianmen Precious, to a one-month imprisonment over N1.5 million scam on Bitcoin trading, reports ITRealms.

Bitcoin, ITRealms gathered, is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator.

The Economic and Financial Crimes Commission (EFCC), ITRealms recollects, had arraigned Omokaro Osamudianmen Precious, before the court on one count charge bordering of cheating and obtaining the amount under false pretences.

According to the Head of Media and Publicity, Mr Wilson Uwujaren, EFCC on Wednesday, accused Omokaro as posing as a genuine business man that deals in Bitcoin.

The anti-graft agency said Omokaro had promised the victim through her brother a 10 per cent interest on her capital investment within one month.

The presiding judge, EFCC said, ruled and ordered the fraudster to be jailed for committing the offence contrary to section 388 of CAP 30, Criminal Code Law, Enugu State and punishable under Section 388 of the same Law.

The count read, “That you, Omokaro Osamudianmen sometime in 2018, within the jurisdiction of the High Court of Enugu State, by means of fraudulent trick obtained the sum of N1,545,000.00 from one Ifunanya Afam Okonkwo, when you presented yourself to her as a genuine business man with a promise to pay her interest and return her capital within one month and thereby committed an offence.”

However, he pleaded guilty to the one count charge preferred against him by admitting to having committed the crime.

In view of the accused person’s plea, the prosecuting counsel Mbachie Innocent applied to review the facts of the matter presented by the prosecuting witness Abdulraman Babakano and urged the court to convict the accused.

The defense counsel, Kakaan Desmond on the other hand pleaded with his lordship to temper justice with mercy since the accused is a first offender and did not waste the court’s time by admitting to the crime.

Nenye Dom/ED, Ops with additional report by ChannelsTV

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Exonerated: Akande, Okoloko not party to Union Bank share scam -Tribunal

ITREALMS:

The duo of Onikepo Akande and Onajite Okoloko have been exonerated from the alleged shares scam perpetrated on behalf of Union Bank against its investors by the Investments and Securities Tribunal (IST), sitting in Abuja, reports ITRealms.

The Securities and Exchange Commission (SEC), ITRealms gathered, had dragged Union Bank and 21 other individuals comprising the Directors and Company Secretary who had served on the Board of the Bank between 2007 and 2008 before the Investments and Securities Tribunal.

ITRealms reports that the aggrieved Applicant, SEC had informed the Tribunal, that the 21 respondents engaged and/or participated in a scheme and or artifice that enabled Union Bank of Nigeria Plc to either directly or indirectly fund the purchase of its Shares and thereby retaining the beneficial ownership of the shares, and as a consequence, (i) violated or contributed to the violation of the provisions of the Investments and Securities Act and the rules and regulations made thereunder, (ii) undermined the fair and orderly conduct of the securities market, and (iii) abused, breached and undermined the integrity of the securities market;

SEC further informed that the Respondents unlawfully employed, (in connection with the purchase or sale of the securities of Union Bank of Nigeria, Plc) a device, scheme or artifice for the purpose of creating a false and misleading appearance of active trading of Union Bank securities and/or shares, which devise, scheme or artifice so employed by the Respondents herein, violated the provisions of the Investments and Securities Act and the rules and regulations made there under.

SEC further claimed that the Respondents undermined the regulatory and supervisory authority/activities of the Applicant, by ordering the appointment of KPMG Professional Services or any other reputable firm of accountants acceptable to the Tribunal for the purpose of undertaking an inquiry/investigation to determine (i) the extent and quantum of the losses suffered by investors in the securities market as a result of the unlawful activities of the Respondents outlined in this suit and (ii) the nature, extent and quantum of any direct benefit or advantage received or receivable by the Respondents as a result of the Respondents’ aforesaid unlawful activities.

But, in its decision, the Tribunal of Six (6) headed by Nnenna A. Orji ruled that the names of Onikepo Akande and Onajite Okoloko who had been originally sued as 19th and 20^th Respondents respectively, be struck out on the grounds that they were not yet Directors when the alleged infractions took place.

In the Suit listed as CASE NO. IST/LA/OA/20/2010, the Tribunal noted that the processes were amended to include both Onikepo Akande and Onajite Okoloko, who were appointed only after the infractions had taken place.

It would be recalled that some Directors of Union bank were involved in a share scam involving the purchase of Union Bank shares for itself to mislead the Public, using funds borrowed from two foreign financial houses totaling over N30bn between 2007 and 2008.

Uboshe Uboshe/GEE

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Two in EFCC net over online scam

ITRealms:

The duo of Egbedayo Semilore and Elijah Jeremiah, aka (jerry) are now cooling off in the custody of the Economic and Financial Crimes Commission (EFCC) reports ITRealms.

Jerry, 29, a self-styled fashion Director of Datsol Industries Limited was arrested for alleged Internet fraud. While Semilore, 26, engages in Internet love scam, Jeremiah, 29, is a predator on online auction sites.

EFCC confirmed to ITRealms that Semilore while posing as an Afghan based US Army officer with the names Sergeant Shaft Pagan and Perrie Edingson allegedly defrauded unsuspecting ladies. His last victim is one P. J. (full names withheld), a US national from whom he claimed to have obtained about Four million naira (N4m) in tranches and bought himself a car.

Arrested differently, the suspects have both made confessional statements. Jeremiah confessed to using fake instruments to order goods from China through online auction sites. According to him, he downloads Letters of Credit purportedly issued by Scotia Online Financial Services of Scotia bank worldwide from Google with which he pays for his purchases.

The auctioneers, unaware of his antics often fall victim of his game by shipping the goods to him ahead of confirmation of payment.

Semilore, during interrogation also confessed to have used proceeds of romance scam to sustain a flamboyant lifestyle and bought himself a 2010 Lexus car which he registered in his mother’s name.

Operatives recovered several items from the suspects. One laptop, three modems, one iphone  and two Nokia phones, international Passport, forged Union Bank Statement of Account with NUBAN number:10141411389 for Datsol Industries Limited  and an envelope containing several documents were recovered from Jeremiah.

Also, three identity cards bearing different names and biodata,  a 2010 Black Toyota Lexus car with registration number (Lagos) SMK 475 EH, two laptops and one Blackberry Passport phones  were recovered from Semilore.  Several scam mails were also found and retrieved from his laptops.

They will be arraigned in court as soon as investigation is completed.

  
Chuks Egbune/GEE
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Pix: Semi and Jerry @EFCC