A prosecution witness in the ongoing trial of the former Managing Director of FinBank Plc, Mr. Okey Nwosu and three others at a Lagos High Court Ikeja, Lagos, Anafi Buba Mohammed, yesterday, gave details of how the bank’s shares were allegedly manipulated by the defendants.
Mohammed, a law enforcement officer in charge of compliance and enforcement department in the EFCC, while being led in evidence by counsel to the EFCC, Mr. Rotimi Jacobs(SAN), said the companies claimed that the defendants perpetrated the act through several companies created by the bank management.
He said that only seven out of the many SPVs, on were pronounced during the course of their investigation.
According to him, the bank’s deposits were used to secure the shares through two stock brokerage firms; namely, Springboard Trust and Investment Limited before they were transferred to the SPVs, whose main purpose was to manipulate the bank shares.
Mohammed explained that the act of buying of shares by the bank was contrary the regulations of the supervising authorities even though it was a practice used by many banks to boost their image in the market.
He told the court that he discovered during investigation that 34 million of such shares of the bank were later crossed from Integrated Limited to Dayo Famoroti, a director of the bank.
The witness however said that their investigation was non conclusive as they were stopped mid way by the authority.
A bank examiner with the Nigeria Deposit Insurance Corporation (NDIC), Asunmo Shittu Bello who also testified before the court said that his team discovered many atrocities which wer not permitted by law.
Nwosu, Dayo Famoroti, Danjuma Ocholi Mrs. Agnes Ebubedike, are standing trial for allegedly stealing N10.9 billion belonging to Finbank between September 2006 and November 2007.