The Lagos State Special Offences Court sitting in Ikeja, Lagos, has discharged and acquitted Purple Prime Limited and its director, Adebowale Johnson, in the alleged ₦964 million fraud involving Fidelity Bank, after finding that the prosecution failed to establish criminal liability and exposing serious lapses in the bank’s internal controls.
Justice Ismail Ijelu, in his judgment, held that the Economic and Financial Crimes Commission (EFCC) failed to prove conspiracy or stealing against the defendants, noting that the evidence before the court pointed more to weaknesses in Fidelity Bank’s safeguarding of customer funds than to any coordinated criminal conduct by the accused persons.
The EFCC had filed an 14-count charge on November 23, accusing the defendants of conspiring to steal ₦964 million from the bank through alleged online banking and ATM fraud.
The defendants pleaded not guilty to all the charges.
During the trial, the prosecution called four witnesses and tendered several documents.
However, the court found that the prosecution’s case relied largely on tracing the movement of funds through various accounts without establishing how the defendants unlawfully appropriated the funds or exercised criminal control over them.
Justice Ijelu observed that the evidence revealed a chain of financial transactions facilitated by intermediaries, including bureau de change operators, who testified that they acted strictly within the scope of legitimate commercial transactions and based on instructions received.
The witnesses denied any knowledge of fraud or conspiracy.
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The court noted that the prosecution failed to demonstrate any meeting of minds or coordinated plan among the defendants to defraud the bank.
Rather, the movement of funds suggested lapses within the banking system that allowed the transactions to occur without adequate safeguards.
Justice Ijelu further held that the EFCC did not present evidence of digital forensic analysis, communication records, or internal bank failures being exploited through a deliberate criminal agreement.
He stressed that criminal liability cannot be inferred merely from the fact that funds passed through accounts linked to the defendants.
According to the judge, tracing funds alone only establishes movement, not theft, and where a financial institution alleges fraud, there must be clear proof of unlawful taking, intent, and collusion, elements the prosecution failed to establish.
The court also pointed out that some individuals involved in the transaction flow were neither arrested nor charged, further weakening the prosecution’s narrative and leaving unanswered questions about how the funds exited Fidelity Bank’s custody without timely detection.
Justice Ijelu held that the prosecution’s reliance on uncorroborated and, in some cases, retracted extra-judicial statements could not cure the absence of concrete evidence linking the defendants to any fraudulent scheme.
In concluding the judgment, the court held that the failure to secure and monitor funds in the custody of the bank could not be shifted to neutral transaction participants without proof of criminal intent.
The judge therefore discharged and acquitted Purple Prime Limited and Adebowale Johnson of all charges.
