Otudeko, others seek out-of-court settlement over alleged N12.3billion fraud, as court validates trial

The Federal High Court in Ikoyi, Lagos, on Monday adjourned case of alleged N12.3billion fraud against Oba Otudeko, chairman of Honeywell Group, and his co-defendants following request by defendants to enable them to explore an out-of-court settlement of the case.

Penpushing reports that the trial judge Justice Chukwujekwu Aneke in his ruling granted the request of the defence lawyers to adjourn the matter and dismissed the notices of preliminary objection filed by Otudeko.

The judge granted the adjournment of the case till May 8, 2025, following the defence lawyers’ request first mooted by  Otudeko’s lawyer, Wole Olanipekun, who informed the court that discussions were underway to resolve the matter amicably.

Penpushing further reports that the the lawyers explained that, the last meeting on the issue took place at the office of the Attorney General of the Federation, with all of them and the representative of the nominal complaint – First Bank – in attendance.

The judge earlier dismissing the defendants’ applications seeking to halt the alleged ₦12.3 billion fraud trial held that the case would proceed, emphasizing that such applications could not prevent the court from proceeding with the matter.

Penpushing also reports that Aneke emphasised that jurisdictional objections should not serve as a barrier to trial at this stage in criminal cases, and following the ruling, the prosecution counsel, Bilikisu Buhari, representing the Economic and Financial Crimes Commission (EFCC), expressed satisfaction.

The Economic and Financial Crimes Commission (EFCC), counsel stated that the commission stating welcome the court’s decision and are prepared to proceed with the case.

Penpushing reports that Olanipekun explaining that settlement talks was underway informed the court that the Attorney General of the Federation held a meeting on Wednesday (12 March), during which the defence lawyers and the representative of First Bank (the nominal complainant), agreed to pursue a settlement.

The Otudeko’s counsel pointed out that, in line with this agreement, no further legal processes would be filed by any party before or after the ruling, stressing that with the Attorney General’s approval, stated that April 9, 2025 was the settlement meeting date, and requested an adjournment to a date after April 9, to allow time for a report on the settlement outcome.

Penpushing further reports that the judge asked the prosecution counsel if she was aware of the meeting, and responded in the affirmative, and suggested that a date be fixed for the settlement report and the defendant’s arraignment.

The counsel of Otudeko, however, objected to the prosecution’s push for arraignment, questioning its necessity given the ongoing settlement process, while the crimes commission counsel, insisted that the trial proceed as scheduled, prompting a debate over the next court date.

Penpushing also reports that the trial judge observed that the court would be on vacation after April 9, 2025 and proposed May 8, 2025 as the next hearing date, while the defence counsels, including Adeyinka Olumide-Fusika (representing the second defendant), Kehinde Ogunwunmiju (representing the third defendant), and Charles Adeogun (representing the fourth defendant), requested 9 May instead.

The second defendant lawyer argued that a later return date would allow for further discussions, and at the same time, Olanipekun highlighted that the March 12, meeting lasted over two hours and saw the participation of all key legal parties.

Penpushing reports that he reiterated that the Attorney General had advised a temporary ceasefire in legal proceedings to facilitate an amicable resolution, and the judge after considering the arguments, adjourned the case to May 8, 2025 for a settlement report.

The Economic and Financial Crimes Commission (EFCC) it is recalled on January charged the defendants with advanced fee fraud involving N12.3 billion, alleging that Otudeko, a former Managing Director of First Bank of Nigeria (FBN), Olabisi Onasanya, a former board member of Honeywell, Soji Akintayo, and a firm, Anchorage Leisure, conspired to perpetrate the fraud.

Penpushing further reports that the agency accused them of defrauding First Bank of Nigeria (FBN) and its depositors by fraudulently misrepresenting loans as credit facilities for V-Tech Dynamic Links Limited and Stallion Nigeria Limited.

The commission alleged that the defendants subsequently laundered part of the money through Honeywell Flour Mills Plc, stating that the loans were reportedly disbursed in multiple tranches.

Penpushing also reports that the offence violates Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act 2006 and Section 15(2)(d) of the Money Laundering (Prohibition) Act 2011.

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