More than 20 notable Nigerians are getting set to commence a class action against a Lagos State-based oil magnate and former Managing Director of Duport Midstream Company Limited, Atlantic Refineries and Chairman of Platform Capital, Akintoye Akindele, over an alleged scam running into over $150 million (over N240 billion).
Foremost media practitioner, Lere Olayinka, disclosed this development to newsmen on Saturday on behalf of the victims of the scam.
Olayinka disclosed that a senior lawyer based in Abuja has been briefed by some of the victims.
This is coming a few weeks before his trial in Lagos State for alleged diversion of $5,636,397.01 and N73,543,763.25 belonging to Summit Oil International Limited and bribery of the police with N150 million.
The trial, which was moved to Lagos from Abuja in May this year, will begin in Lagos on October 3.
“The trial of Akindele for allegedly bribing the police with the sum of N150 million to stall their investigation will begin in Lagos on October 29,” a source said.
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Justice James Kolawole Omotosho of the Federal High Court, Abuja had on May 9, 2024 ordered that the trial of Akindele in an alleged $5.6 million fraud be moved from Abuja to the Lagos Division of the court.
Akindele and his company are standing trial on a four-count criminal charge bordering on alleged diversion of $5,636,397.01 and N73,543,763.25 belonging to Summit Oil International Limited, founded by late philanthropist and politician, Chief Moshood Kashimawo Olawale Abiola.
He is also facing prosecution for allegedly bribing the police with N150 million to stall their investigation.
Olayinka disclosed that one of the victims, a notable player in the oil industry, initiated the move for the class action, and opened a WhatsApp Platform to coordinate other victims.
In law, Class Action allows one or more persons (plaintiff) to sue on his or her own behalf and on behalf of a number of persons (class) who have a claim to a remedy for the same or similar alleged wrong.
In recent times, Akindele has been in the eyes of storm with accusations and counter accusations bothering on misappropriation of funds, alleged shares racketeering, manipulating boards’ decision among other allegations.
On March 1 this year, a Federal High Court in Abuja had ordered the remand of Akindele at the Kuje Correctional Centre in the nation’s capital.
Justice James Omotosho ruled that Akindele should remain in custody till March 20 when the court will consider documents confirming the perfection of the bail granted him earlier.
Akindele and his company, the second defendant in the suit marked: FHC/ABJ/CR/570/2023, were said to have committed the act between 2017 and 2021 when they allegedly converted the said sum received from Shell Petroleum Company into personal use.
Olayinka said; “I am aware that he is also being investigated by the Economic and Financial Crimes Commission for allegedly collecting $35 million from the Nigerian Content Development and Monitoring Board to build a refinery in Brass, Bayelsa State.
“All of the $35 million has been spent, yet there is nothing to show for it.
“No refinery, no buildings, nothing.”
The story of the seeming collapse of Akindele’s alleged house of fraud started when he was arrested by the police in Abuja early this year for allegedly fleecing Duport Midstream Company Limited of $25 million, part of which a sum of $5.6 million belonged to Summit Oil International.
He has been in and out of the court since then.
On August 16, 2023, Music Entrepreneur, Lanre Dabiri, otherwise known as Eldee Tha Don, told the public how Akindele used a venture capital vehicle, Platform Capital, to collect funds from investors while he, without suspecting any at the time, acted as the face and voice of the brand without the promised injection of funds.
Dabiri said: “Sheyman, the artist, producer and entrepreneur, introduced me to a man by the name, (Akin) Toye Akindele, who at the time had a capital advisory firm.
“What do they do?
“They look for business, invest in businesses, and fund those.
“The thing for me at the time was: ‘Oh, you have this thing going on, you got these artists, you’ve got the music, let’s partner and set up a bigger entertainment entity, which is IMAN Entertainment.’
“They said they would put in so so million dollars, do this, do that, bla bla.
“So I am on the board, unknown to me, as it is said, what essentially was happening was he and his partners at the capital advisory firm had people who were funding what was supposed to be Iman Entertainment.
“However, Iman Entertainment was not getting money, but Eldee, who was the face of Trybe and IMAN, was basically everywhere trying to hold it all together.
“I had to pay money from my pocket.
“It affected the relationships that I had.
“I get a little emotional about it now.
“And that’s because there were people caught in-between.
“The artists, the staff, the businesses, vendors and more.
“I kept telling them money would come.
“I had to dip into my accounts in the United States, dip into my accounts in Nigeria.
“Akindele and his partners kept assuring us.
“Where you were supposed to get $1 million, you get $10,000.
“It went on until he got into trouble and he went on to float another entity to continue his business.”
Another of the scams involving Akindele was the Accord Savings and Loans saga of 2013 and 2012.
Another victim said: “Sometimes in 2012, Akindele set up a structure to obtain a Mortgage Bank Licence.
“He collected money from various people as deposit for shares, but never obtained a licence and the deposits for shares developed wings and flew away.
“One of the depositors demanded for his money and reported the case to the Special Fraud Unit of the Nigeria Police.
“Akindele was invited, but he left the country.
“When he returned, he was hiding in his house.
“The police had to break in through his roof to his bedroom to arrest him.
“He transferred some assets as repayment to that depositor, but other depositors never got back their money.”
Another victim narrated: “Between 2015 and 2028, Akindele and his partner, Ayo Arogbo, raised two private equity funds totalling $350 million.
“The funds were supposed to invest in growth businesses, but Akindele instead started creating shell companies, investing the funds in them and taking the monies out back end.
“His partner reported this to the investors in the fund, who asked him (Akindele) to resign and subsequently wound up the fund.
“Today, Akindele is well known in the venture capital and private equity space as the man who single handedly nearly destroyed that market by making it near impossible for new entrants to raise Private Equity funds as investors are weary of Nigerians.”
One vehicle that has been used consistently by Akindele was Platinum Capital.
He used Platinum Capital to raise millions of dollars from unsuspecting Nigerians.
The modus is to collect deposits from individual and corporate bodies with various tenors.
A close friend of one of the victims said: “In some cases, he promised them shares in certain companies and mouth watering returns and with this, many people had been defrauded of over $100 million.
“We have information from some people that he has collected over $40 million from in total.
“He has refused to pay them any returns or even repay the deposits at maturity.
“He’s been lying to them that he is expecting some money from which he’ll repay them.
“Amongst them are about $10 million Private Equity fund in Botswana, $2 million from a close friend, another $1.5 million from a close friend, $4.7 million Miri Lending Fund and N1.3 billion and $5 million from staff of an International Oil Company.
“The list is endless.”
