…Funds Transferred to UBA, Zenith Bank, Eco Bank, GTBank, FCMB, Others
Two men, Daniel Kelechi Ikeoha and Sylvester Ebeta, have been ordered to remain in custody at the Ikoyi Correctional Facility in Lagos by a Federal High Court for allegedly defrauding Interswitch Nigeria Limited of N622 million.
The ruling, delivered by Justice Yellim Bogoro, followed the defendants’ plea of not guilty to charges of conspiracy, hacking into Interswitch’s server, and unlawfully taking possession of funds.
The charges against them violate provisions of the Cyber Crimes (Prohibition, Prevention, Etc.) Act, 2015, and the Money Laundering (Prevention and Prohibition) Act, 2022.
According to Prosecutor Justine Enang, a Chief Superintendent of Police (CSP) with the Legal Department of the Police Special Fraud Unit (PSFU) in Ikoyi, the defendants conspired with others still at large between January 2022 and October 2023 to fraudulently manipulate the Interswitch Payment Gateway.
This manipulation enabled unauthorized transfers totaling N622 million from various customer accounts to accounts owned by the defendants.
The funds were reportedly transferred into several bank accounts associated with the defendants across different banks, including Kuda Microfinance Bank, UBA, Zenith Bank, Eco Bank, GTBank, FCMB, and Moniepoint Microfinance Bank.
During the arraignment, the defendants’ attorney, N.S. Hart, submitted two applications.
The first challenged the court’s jurisdiction, arguing that her clients were previously charged before a magistrate court, making the current charges an abuse of judicial process. The second application sought bail for the defendants.
In response, the prosecutor confirmed that charges in the magistrate court had been withdrawn and presented a counter-affidavit opposing the bail request.
Justice Bogoro ordered arguments on the bail application and scheduled a ruling for November 14, remanding the defendants in custody until then.
The formal charges against the defendants allege that they, along with unidentified accomplices, conspired to commit fraud, hacked the Interswitch system, and converted the stolen funds for personal use.
If convicted, they face penalties under both the Cyber Crimes Act and the Money Laundering Act.
