N32m Fraud: EFCC Beams Searchlight on Abuse of Garnishee Order

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N32m Fraud: EFCC Beams Searchlight on Abuse of Garnishee Order

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The Ibadan Zonal Office of the EFCC is investigating cases of conspiracy and stealing involving the use of Garnishee Orders targeted at High Net worth bank accounts with low or no activities.
The investigation is sequel to series of complaints from some banks on the increase in the inflow of such court orders on a number of dormant accounts. Three of such cases, where attempts were made to steal over thirty million naira (N32, 219, 975. 64), are receiving the attention of the operatives of the Commission to unravel the brains behind this new spate of crimes.
An Ibadan based legal practitioner has been arrested and is still being quizzed in connection with an attempt to procure such phony court orders.
However, investigations have revealed that one of the modes of operation is that two individuals will approach the court to decide on alleged case of breach of contract, having at their disposal insider information on the inactive bank account with high net worth.
A third party purported to be the owner of the targeted dormant account would be joined in the matter as being responsible for the failed transaction.
Having secured a judgment on the phony case of breach of contract, one of the parties would present a prayer before the court for a Garnishee action against the dormant account.
The bank is by the Order then compelled to affect a transfer of funds from the account without the knowledge of the original owner of the account.
It is imperative that bank officials become wary of how Garnishee Order on any account is processed and obtained and take necessary action to protect their customers.

SOURCE: EFCC

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