Kelechukwu Mbagwu, the founder of CMB Building Maintenance & Investment Company Limited, is facing serious fraud charges in connection with an alleged N1 billion scam.
The Police Special Fraud Unit (PSFU) in Ikoyi, Lagos, has filed charges at the Federal High Court in Lagos accusing Mbagwu and his company of conspiring to obtain N1,026,968,433 from Access Bank through false pretenses.
According to the Police, Mbagwu and CMB Building Maintenance & Investment Company Limited falsely presented a sold property in Oniru, Victoria Island, Lagos, to Access Bank as collateral for the loan. They are also accused of misappropriating the loan funds for personal use.
The charges, filed under the Advance Fee Fraud and Other Fraud Related Offences Act, No. 14 of 2006, and the Money Laundering (Prevention and Prohibition) Act, 2022, relate to violations of Sections 8(i)(a) and 1(i)(a) of the former Act, as well as Section 18(2)(b)(d) of the latter, both of which are punishable under the respective laws.
Kelechukwu Mbagwu and his company were initially set to appear in court for arraignment on February 12, but the proceedings were adjourned to April 30 due to their absence.
“That you Kelechukwu Mbagwu (Managing Director), CMB Building Maintenance & Investment Co. Ltd, and other directors (now at large), sometime in 2019, in Lagos, with intent to defraud, conspired to commit felony by obtaining money by false pretence, an offence contrary to Section 8(i)(a) and punishable under Section 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act, No. 14 of 2006.
“That you, Kelechukwu Mbagwu, did falsely present to Access Bank, claiming that the property located in Oniru, Victoria Island, was owned by you and that you had title to it at the time of the transaction, while knowing that the property had already been sold to a third party without disclosing this to the bank. This misrepresentation is an offence under Section 1(i)(a) of the Advance Fee Fraud and Other Fraud Related Offences Act, No. 14 of 2006.
CMB Building Maintenance & Investment Company Limited, founded in 2003 in Lagos, is a leading player in the real estate sector, offering services in property development, advisory, architectural design, commercial and industrial construction, as well as road construction and maintenance.
