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How Emmanuel Nwude sold an imaginary airport for 242 million dollars
From 1995 to 1998, Emmanuel Nwude and his accomplices completed the third biggest private scam in documented history.
In today’s world where advanced fee fraud or 419 is as much a part of Nigeria’s identity as Jollof or an ailing president, financial crime is one of the biggest concerns, for individuals and governments the world over.
In
2017, the only thing standing between your bank account and a zero
balance is a hard-working hacker, the right software and a VPN to
disguise the location of the numerous young fraudsters who have made
cyber-crime into an art and an industry.
As
intimidating as it may sound, years before the internet swam its way
into Nigeria on the back of telcos, a Nigerian bank official secured a
bounty that would inspire the most secluded yahoo boy to shoot a series
of music videos.
In a series of events that is credited as the third largest financial crime in World History, Emmanuel Nwude, a director at Union Bank, defrauded Nelson Sakaguchi and the Brazilian bank, Banco Noroeste Brazil
of the sum of 242 million dollars with a scheme that, in retrospect,
seems like something out of an episode of Impractical Jokers.
According to a Newswatch
editorial dated Monday, July 07, 2003, Emmanuel Nwude was, at the time
he was caught, one of the wealthiest Igbo businessmen in Nigeria.
Popularly known as the Owelle of Abunuga,
Nwude is said to have owned a 10-storey building in the heart of Lagos.
In a manner consistent with his wealth and flashy luxury, he lived on
the top floor of the building while the bottom floor housed a commercial
bank.
Every meter of space in between those two floors was dedicated to his private concern, Euro-Holdings.
Nwude
was said to own buildings across Nigeria and cities in the United
States. He was also reported to be a major financier of the People’s Democratic Party and as Newswatch reported, a close ally of former Vice-President, Atiku Abubakar.
Anyone
who wondered about his wealth would have found a simple convincing
response. Nwude owned millions of shares as the singular largest equity
holder in Union Bank. Until 2001, he was also a member of the board of
directors of the bank.
It was in this capacity that Nwude pulled off one of the most daring and outrageous schemes that the world has ever seen.
According to Nuhu Ribadu, who was EFCC’s chairman at the time of his conviction, the swindle took place over a four-year period starting in 1995.
His main tactic was impersonation. Nwude posed as the CBN governor at the time, Paul Ugwoma
His accomplice, Ikechukwu Anajemba posed as Rasheed Gomwalk who was the CBN's Director of International Remittance. Anajemba’s wife, Amaka posed as Gomwalk’s wife, completely the unholy trio.
Ikechukwu Anajemba would die in 1998, as the proceeds of the scam were finally delivered, leaving his wife to take his share.
Together,
the trio and a host of ancillary accomplices presented a proposition to
the head of International Finance at Brazil’s Banco Noroeste Brazil,
Nelson Sakaguchi.
Using false
correspondence and Nwude’s access to confidential, high-level documents,
they convinced Sakaguchi that the Nigerian government was seeking
investors to build an airport in Abuja, the new capital.
If Sakaguchi could provide the first investment of 242 million dollars, they said, he would be entitled to a commission of 10%.
The
deal has not been presented as a corporate offering so Sakaguchi did
what he thought he had to do; he illegally into his bank’s funds and
began to make a series of payments to accounts around the world.
He and Nwude agreed that he would pay some of the 242 million as cash and the rest in some form of facility.
Between
1995 to 1998, Sakaguchi transferred 191 million in cash to Nwude and
his accomplices. The rest was conveyed as some form of outstanding
interest.
During this period, Nwude and
his accomplices spent lavishly. Amaka, Anajemba’s wife, became known as a
socialite, erecting massive edifices in her hometown of Enugu and making forends among Nigeria’s political class.
The fraud was only discovered in 1997 when the victim bank was the subject of a buy-out by the Spanish bank, Santander.
At a joint board meeting in 1997, an official from Santander inquired about why a large sum of money, two-fifths of Noroeste’s total value and half of their capital, was sitting in the Cayman Islands unmonitored.
This discovery led to extensive criminals investigations in five continents.
The
effect on Banco Noroeste was fatal. The owners had to pay the missing
242 million dollars out of their pockets to for the purchase to go
ahead, but that narrow escape did not secure its future. In 2001, Banco
Noroeste collapsed.
Nwude and his
accomplices enjoyed their loot for years, but in 2003, a trail created
by years of reading the fine print and making connections from the
Cayman Islands landed in Lagos.
Newswatch reported that Nwude was picked up early June 2003 at his residence in Ikoyi, Lagos. Seven of his exotic cars were also taken to the premises of the EFCC on 15, Awolowo Road, Ikoyi
So began a series of trials with the Central Bank of Nigeria and the newly created Economic and Financial Crimes Commission on the one hand, and Emmanuel Nwude and his accomplices on the other.
In February 2004, Amaka Anajemba, Emmanuel Nwude, Emmanuel Ofolue, Nzeribe Okoli, and Obum Osakwe, with Ikechukwu Anajemba
post-humously mentioned, were all charged in the Federal Hgh Court,
Abuja with 86 counts of “fraudulently seeking advance fees” and 15
counts of bribery related to the case.
They all pleaded not guilty.
Their trial only got more eventful from thereon out.
By
early 2004, it almost appeared that judicial bureaucracy had brought
the trial to a stalemate. In a report dated Tuesday, July 20, 2004, the
BBC reported that the presiding judge, Lawal Gumi declared that the elements of the crime had not taken place in Abuja, and as such, he lacked the jurisdiction to hear the case.
“It
is my considered view that the appropriate place for the trial of the
accused on those charges is the high court of Lagos. For these reasons… I
do decline and strike out the case from my list,” Gumi is quoted as saying.
Nwude and his accomplices were released, only to be re-arrested outside the court and taken to Lagos.
The next year, with the trial nearing a definitive conclusion, underhanded tactics began to play out.
Nwude allegedly attempted to bribe the EFCC head honcho, Nuhu Ribadu
with 75,000 dollars in cash. He was charged with additional counts for
his trouble, in addition to a five-count charge for an incident where a
prosecution witness was almost kidnapped.
In September 2005, a bomb scare during his trial caused the court-house to be evacuated and the trial adjourned.
Resolution
finally came in its first form when Amaka Anajemba admitted to helping
her husband. She was sentenced to two and a half years in prison and
ordered to repay $25.5 million.
Weeks after, Sakaguchi, the object of Nwude’s fraud offered first-hand testimony in a Lagos high court.
With
little room to manoeuvre, Emmanuel Nwude and Nzeribe Okoli pleaded
guilty to the charges against them. They had conceded grounds in hopes
of getting a lenient sentence. That did not seem to matter much; both
were sentenced to 37 years in prison collectively.
According to Reuters, Emmanuel Nwude was sentenced to 25 years and Nzeribe Okoli to 12 years for their part.
Reading his final judgement, Justice Joseph Oyewole was reported as saying: “The
activities of the accused persons not only led to the collapse of a
bank in a foreign country but also brought miseries to many innocent
people.”
The next Monday, according to IRIN News, EFCC chair Nuhu Ribadu made the refund of US $17 million to William Richey, a lawyer representing the defunct Banco Noroeste.
Nwude’s assets were confiscated and he was charged with paying a fine of 10 million dollars to the National government.
For
most who followed the trial from the pages of newspapers and television
screens, the victory was somewhat short-lived. Emmanuel Nwude was
released in 2006.
In the months after,
he instituted many Fundamental Rights cases against the government for
the recovery of some of his property, on the grounds that he had
acquired them before the fraud.
Nwude’s
fraud put Nigeria in a delicate situation. With the advanced free fraud
of the 1970s and 80s and the internet scams of the digital age, it is
easy to see why the country suffers such a bad reputation in the
international community and Nigerians are portrayed first as
enterprising fraudsters before anything else.
For
every Nwude who was caught, there are 100 affluent Nigerians enjoying
the fruit of ill-gotten gains in peace and tranquillity. It is easy to
assume that the long arm of fate will catch up with them at some point.
In truth, that is only a hopeful conclusion.
More than a decade after his release, Nwude presently sits in one of the cells at the creatively-named Arkham Prisons, Gotham City in Anambra State, awaiting trial for murder.
On August 19, 2016, about 200 people attacked the town of Ukpo in the Dunukofia area of Anambra state, ostensibly as part of a land dispute with the neighbouring Abagana, where Nwude still enjoys heavy clou.
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