A Federal High Court, Ikoyi, Lagos, presided over by Justice Yellim Bogoro has ordered the remand of two middle-aged men, Daniel Kelechi Ikeoha and Sylvester Ebeta, in the Ikoyi facility of the Nigerian Correctional Services (NCoS) following allegations that they defrauded Interswitch Nigeria Limited of N622 million.
The suspects were arraigned on multiple charges related to cybercrime and money laundering.
Ikeoha and Ebeta are being accused of conspiracy, hacking into Interswitch’s servers, and unlawfully converting the proceeds from these actions.
Both defendants pleaded not guilty to the charge which is contrary to Sections 27(1)(b) and 14(1) of the Cyber Crimes (Prohibition, Prevention, Etc.) Act, 2015, as amended in 2024, and Section 18(2)(b)(d) of the Money Laundering (Prevention and Prohibition) Act, 2022.
During arraignment, counsel for the Police Special Fraud Unit (PSFU), Justine Enang told the court that the defendants, alongside unnamed collaborators, allegedly orchestrated a scheme between January 2022 and October 2023 by exploiting Interswitch’s payment gateway, manipulating the system to enable multiple unauthorized transfers and withdrawals amounting to N622 million.
According to the prosecution, the funds were transferred to a series of accounts.
The accounts were allegedly registered under the names of the defendants or connected entities, effectively concealing the proceeds.
While the defendants’ arraignment lasted, their lawyer, N.S. Hart instituted two motions before the court.
The first motion challenged the Federal High Court’s jurisdiction because the defendants had already faced similar charges in a Magistrate Court, arguing that the current case amounted to an abuse of court process.
The second motion sought bail for the defendants.
In response, Enang informed the court that the charges in the Magistrate Court had been withdrawn, effectively clearing the path for the present case.
The prosecution also opposed the bail request, submitting a counter-affidavit.
After hearing arguments from both parties, Justice Bogoro scheduled the ruling on bail for November 14, ordering that Ikeoha and Ebeta be held at the NCoS Ikoyi facility until then.
The formal charges laid against the defendants allege that they conspired to defraud Interswitch of N622 million, suppressed its payment gateway system, and used various accounts to transfer the funds for personal gain.
The charges further allege money laundering, accusing Ikeoha and Ebeta of converting and taking possession of funds they knew were proceeds from unlawful activities.