Court Jails Ex-Convict Over N3.09bn FCMB Fraud, Orders Restitution as Probe Exposes Banking System Gaps

A fraud investigation involving more than N3.09 billion stolen from customer accounts has uncovered serious security lapses at First City Monument Bank (FCMB), while efforts to recover part of the funds continue through legal action. 

Justice Rahman Oshodi of the Special Offences Court in Lagos sentenced an ex-convict, Oluokun Gabriel Adekola, to three years in prison for laundering N12 million linked to the larger fraud scheme. The court also directed him to repay N3.5 million to the bank within three months as part of restitution.

According to court proceedings, the fraudsters allegedly took advantage of weaknesses in digital banking systems to gain unauthorized access to customers’ accounts. Large sums were reportedly moved without detection and later withdrawn through Point of Sale (POS) agents.

The incident, which affected several accounts held with FCMB, highlighted risks associated with mobile and electronic banking platforms, as well as gaps in internal monitoring controls.

Investigators said Adekola worked with other suspects who are still at large to conceal N12 million traced to his account in 2025. Transaction tracking later helped authorities identify the flow of funds to multiple beneficiary accounts.

Working alongside the Economic and Financial Crimes Commission (EFCC), the bank was able to trace part of the stolen money to Adekola, leading to his arrest, trial, and conviction.

Although the N3.5 million restitution represents only a small portion of the total loss, the court’s order is seen as a step toward recovering stolen funds and enforcing accountability. The case also reflects the increasing use of financial forensics to track illicit transactions across digital payment channels.

During the hearing, EFCC counsel E.S. Okongwu asked the court to impose an appropriate sentence and grant restitution to the victim, while defence lawyer Fabian Nwaforji pleaded for leniency, noting the defendant’s remorse and the more than four years he had already spent in detention. Court Jails Ex-Convict Over N3.09bn FCMB Fraud, Orders Restitution as Probe Exposes Banking System Gaps

A fraud investigation involving more than N3.09 billion stolen from customer accounts has uncovered serious security lapses at First City Monument Bank (FCMB), while efforts to recover part of the funds continue through legal action.

Justice Rahman Oshodi of the Special Offences Court in Lagos sentenced an ex-convict, Oluokun Gabriel Adekola, to three years in prison for laundering N12 million linked to the larger fraud scheme. The court also directed him to repay N3.5 million to the bank within three months as part of restitution.

According to court proceedings, the fraudsters allegedly took advantage of weaknesses in digital banking systems to gain unauthorized access to customers’ accounts. Large sums were reportedly moved without detection and later withdrawn through Point of Sale (POS) agents.

The incident, which affected several accounts held with FCMB, highlighted risks associated with mobile and electronic banking platforms, as well as gaps in internal monitoring controls.

Investigators said Adekola worked with other suspects who are still at large to conceal N12 million traced to his account in 2025. Transaction tracking later helped authorities identify the flow of funds to multiple beneficiary accounts.

Working alongside the Economic and Financial Crimes Commission (EFCC), the bank was able to trace part of the stolen money to Adekola, leading to his arrest, trial, and conviction.

Although the N3.5 million restitution represents only a small portion of the total loss, the court’s order is seen as a step toward recovering stolen funds and enforcing accountability. The case also reflects the increasing use of financial forensics to track illicit transactions across digital payment channels.

During the hearing, EFCC counsel E.S. Okongwu asked the court to impose an appropriate sentence and grant restitution to the victim, while defence lawyer Fabian Nwaforji pleaded for leniency, noting the defendant’s remorse and the more than four years he had already spent in detention.