N1bn Fraud: Court to Arraign CMB Building CEO, Kelechukwu Mbagwu on April 30

A Federal High Court in Lagos has scheduled April 30 for the arraignment of Kelechukwu Mbagwu, the Chief Executive Officer of CMB Building Maintenance & Investment Company Limited, over allegations of conspiracy, obtaining money under false pretenses, and a N1.026 billion fraud. The charges were brought against him by the Police Special Fraud Unit (PSFU) in Ikoyi, Lagos.

Mbagwu and his company were initially set to be arraigned on February 12, but the court postponed the hearing due to the absence of the defendants. The allegations stem from activities that reportedly took place in 2019.

According to the charges, Mbagwu allegedly misrepresented ownership of a property located in Oniru, Victoria Island, Lagos, to Access Bank. He is accused of using the property—already sold to a third party—as collateral to secure a loan facility of N1.026 billion from the bank. It is further alleged that he unlawfully converted the loan amount for personal use.

The police have charged him under multiple legal provisions, including Section 8(i)(a) and Section 1(i)(a) of the Advance Fee Fraud and Other Fraud Related Offences Act, No. 14 of 2006. These offenses are punishable under Section 1(3) of the same Act. Additionally, he faces charges under Section 18(2)(b)(d) of the Money Laundering (Prevention and Prohibition) Act, 2022, which carries penalties under Section 18(3) of the same Act.

The charges state that Mbagwu and other directors of his company, who are currently at large, conspired to commit fraud by falsely presenting themselves as trustworthy customers of Access Bank. He allegedly submitted documents for the Oniru property, claiming it belonged to him and that he had the legal authority to use it as collateral. However, at the time of the transaction, the property had already been sold to a third party—information he allegedly concealed from the bank.

Furthermore, he is accused of knowingly converting the loan funds, despite being aware that they were obtained through fraudulent means. The prosecution argues that this constitutes money laundering under Nigerian law.

Mbagwu’s case is part of broader efforts by law enforcement agencies to tackle financial crimes in Nigeria. The PSFU, which specializes in investigating economic and financial crimes, has been actively pursuing high-profile fraud cases involving corporate executives and financial institutions.

If convicted, Mbagwu could face severe penalties, including imprisonment and forfeiture of assets. The court proceedings on April 30 will determine the next steps in the case. The outcome could also impact regulatory measures in Nigeria’s banking and real estate sectors, given the nature of the allegations.

Authorities have not disclosed whether efforts are ongoing to apprehend the other directors allegedly involved in the scheme. Meanwhile, legal analysts note that the case highlights the risks associated with fraudulent real estate transactions and their impact on financial institutions.

Mbagwu and his legal team have yet to make a public statement regarding the charges. The court is expected to proceed with the arraignment as scheduled, barring any further delays.