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Union Bank Enmeshed in 25-Year Property Fraud Dispute – Ravenewsonline

Nigeria’s Union Bank (UBN PLC) is under scrutiny for fraudulently and unconscionably selling a Nigerian family’s property in a case that has dragged on for over 25 years.

Despite losing the court case at the Federal High Court Lagos against the estate of its late customer, Adedoyin Ogunde; the bank continues to push for further finance-draining legal tactics, a strategy popularly adopted by some unscrupulous institutions to cover up fraud.

On May 31, 2024 (date of trial court judgment), many Nigerians were shocked to discover what a family had been enduring, paying legal fees, investigation fees, and other associated costs in a prolonged legal dispute with Union Bank Plc Nigeria.
The case revolves around the fraudulent sale of their late patriarch’s property, located at No. 6 Moore Road, Ikoyi, Lagos State (now renamed Gbolahan Mudasairu road, Ikoyi), dating back to 1999.
The saying “Justice delayed is justice denied” resonates with the family of the late patriarch who sought legal recourse when their children were still well underage at the time of his death.
Despite obtaining a Federal High Court final judgment against the bank for maliciously and fraudulently selling their patriarch’s property at a grossly undervalued price of N60 million, with an award of N112.050 million in damages, the family remains unsatisfied with the outcome and have no choice but to cross appeal Union bank’s appeal.Union Bank

Union Bank allegedly first filed an appeal after learning the cash sum of the judgment issued by the court would result in refunding the family between N6 billion to N10 billion (after court ordered interest charges are applied). Union Bank’s net income in 2023 was less than  N65 billion.

According to court documents, the main pillar of Union Bank’s legal defense rests on their belief in a technical legal principle called the statute of limitations. Union Bank believes the plaintiff didn’t seek legal redress early enough, and so they shouldn’t be able to question the illicit conduct, at least, not in the courts. The High Court dismissed Union Bank’s legal arguments and the family maintains that the property, consisting of four buildings, should not have been sold in its entirety in the first place.

This case highlights the wicked lengths to which financial institutions will go to overwhelm customers fighting for their fundamental rights, which can only be determined by the courts.

The family’s legal team believes the trial court’s ruling did not adequately address their grievances, as it did not set aside the sale.
In the recent verdict in Lagos High Court case LD/2624/1999, the presiding judge found that Union Bank had fraudulently and recklessly sold the property of its late customer, Ogunde (who incidentally, during his lifetime, was part of Union Bank’s external audit team), despite recovering its debt, after the sale of Block 6A (one of the four buildings).

According to an external auditor with over 30 years banking and accounting experience, with knowledge of the case, the judgment sum awarded by the trial judge, adjusted for prejudgment interest at “CBN rates” brings Union Bank’s liability to the Ogunde estate at  more than N10 billion.Union Bank
He also noted the post judgment sum of 10% per annum would mean Union bank owes the Ogunde family another approximately N1 billion per annum until the judgment sum, for the fraud, pronounced by the Federal High Court judge is paid by Union Bank.
The court further stated that the bank had blatantly and maliciously refused to provide the family with its bank statements at the time of sale (since 1999).
The court faulted Union Bank for refusal to obey several court orders to produce the bank statements.
According to the court documents, Union Bank’s staff cited  frivolous reasons such as an upgrade of its computer system and the age of the statement (Union bank is the oldest bank in Nigeria), as the reason the bank was unable to produce the bank statements in Court and/or, to the Ogunde family since 1999.
The trial court found that Union Bank’s representation that “the property could not be partitioned was a misrepresentation, as they themselves went ahead to partition”.
According to trial court records, the bank claimed to have sold to four different individuals: 1) Plot 6A was sold to Cletus Ibeto for N30 million, despite an earlier offer from Minaj Holdings for N50 million. Plot 6A consists of eight luxury four-bedroom flats each and a five-bedroom penthouse with boys’ quarters.
After the sale of Plot 6A to Ibeto, the outstanding amount of about N7 million was fully recovered by the bank with change due to the Ogunde family.
Union Bank
However, the bank claimed to have further sold to three others, but on further investigation, it was found that Plot 6B purchased by  Pastor Titus Oladayo Osundina of the Seventh-day Adventist Church, is being occupied by Pastor Obrimah, also of the Seventh-day Adventist Church and interestingly a former senior staff member of Union Bank.
Plot 6C was said to have been sold to Mr. Seyi Wright, also of the Seventh-day Adventist Church, and interestingly, he is also an uncle to Shade Ogundare’s son (Shade Ogundare is the bank’s selling agent).
This same, Shade Ogundare, a Lagos-based lawyer and principal partner of LPC Solicitors, was in 2014, reportedly quizzed by operatives of the Economic and Financial Crimes Commission (EFCC), Ikoyi, Lagos for allegedly issuing N70 million dud cheques to her clients – Oyemade Royal Family of Onibeju – being proceeds from the sale of a land belonging to the family in Eti-Osa, Lagos.
Plot 6D was sold to Unigate Investment Limited, with whom the bank’s agent is related to on business level.
The judge stated, “The fact that a property was mortgaged as a single entity and has to be sold as such in a bid to realize a debt does not hold water; it reeks of fraud, collusion, and definitely does not show good faith.”
The judge also noted that the mortgagor was not given access to his account, making it impossible to determine the correct transaction at the time the bank was settling its debt.
The judge held that even if the deceased’s estate had to bear the cost of preparation and perfection of the deed of partition, it could not comprehend why Union Bank went ahead to sell Plot 6B, 6C, and 6D after the sale of Plot 6A for N30 million (where it had realized its debt, interest, and costs, and there was still a balance due to the deceased’s estate).
 Clearly, the intention was not to realize any outstanding indebtedness, as none existed at that point,the judge said.
The judge further stated, “The court cannot help but find that Union Bank acted recklessly and in bad faith.”
A bank is required by fiduciary principle ethics, and basic human decency to act as a trustee in good faith regarding its customers.
This is why well-meaning Nigerians are protesting the bank’s recklessness and bad faith that points to treachery, thievery, corruption, and collusion as regards what started as an innocent bank guarantee for a N4 million business loan which ballooned to about N7 million due to the sudden death of a customer.Union Bank
The court also condemned the bank’s reckless and bad-faith behavior toward its customer. Despite the trial court’s verdict, Union Bank has appealed the judgment, seeking to prolong this 25-year-old legal battle to further protect their illicit interests in the choice property.
Given the slow pace of Nigeria’s justice system, it’s possible that the matter will drag on for years, potentially much further into the adulthood of the family’s children, who were minors at the time of the incident.
Legal pundits have expressed disappointment in Union Bank, currently led by CEO, Mrs Yetunde Oni, accusing the bank of lacking conscience or dealing in good faith.
They allege that instead of negotiating in good faith with the family, the bank is attempting to bully them with further legal proceedings by appealing the court’s decision, refusing to provide the bank statements, and not returning the property left over after having recovered their loan repayment in full, saying that such is tantamount to corporate grave robbery.
Alexis Eniola, a business analyst and social commentator, commented, “a bank should be a custodian of a customer’s deposits from generation to generation. Strangely in Nigeria, due to inordinate greed, selfishness, envy, and unchecked corruption; unscrupulous persons can commit bank robbery in broad daylight on Broad street, and alas when you remove the culprits’ masks, it’s usually the directors’ of the bank.”
Unless Union Bank changes its approach, many believe that the bank’s legacy will be littered among those ill-reputed financial institutions that regularly exploit ordinary Nigerians to stay afloat.
Recently, Union Bank has reportedly been acquired by Titan Trust Bank, and a rebranding exercise may soon follow. Recall the fact that the acquisition of Union Bank by Titan Trust Bank, umpired by former CBN governor Godwin Emefiele, was marred with allegations of corruption, fraud, and money laundering to the tune of N850 billion.
 Nigeria’s banking customers will do well to ensure that they deal with financial institutions mindful of integrity, and possessing ethics at the corporate governance level, before entering into legal agreements where their assets could be at stake.
It is no secret that powerful former bank executives and directors offer loans to their friends and customers who possess choice properties in upscale locations, and thereafter loot these same properties for their personal real estate portfolio, in event of even a momentary default.
The ‘Ogunde Deal,’ as it was coined by then Union Bank insiders privy to the sordid details, is a shining example of top-cadre corporate fraud. A word is enough for the wise.
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