Sterling Bank, Four Mgt Staff Taken To Court For Alleged $200m Fraud, Forgery, Identity Theft

Miden Systems Limited has instituted legal action against Sterling Bank Limited, its Chief Executive Officer, Sterling Financial Holdings Company PLC, and four management staff members for alleged conspiracy, fraud, forgery, criminal breach of trust, and misappropriation of funds.

The engineering, maritime, and consultancy firm, which operates a corporate account with the bank, filed the case before Magistrate Njideka Duru of the Chief Magistrate’s Court in Wuse Zone II, Abuja.

The matter, listed for mention on Monday, was stalled due to the ongoing Nigerian Bar Association (NBA) conference in Enugu and adjourned until September 10.

In a 29-page petition filed through its counsel, Louis Alozie (SAN), Miden accused the defendants of operating a vast fraudulent scheme using its name to open spurious accounts, through which more than $200 million was allegedly siphoned.

The company alleged that repeated requests for account statements were ignored, while liens were unilaterally placed on all its accounts, effectively cutting it off from its funds.

According to the complaint, the bank withheld foreign currency remittances, speculated with them for months, and later liquidated them at heavily devalued rates.

“In one instance, our principal remitted dollar revenues when the official rate was about N150/$1 and the market rate about N198/$1. Sterling Bank stockpiled over N2 billion in our account after taking its spread. By the time they released it, the naira had collapsed to about N500/$1, rendering the original dollar value almost worthless,” the complaint read.

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Miden further alleged that the bank deliberately refused to issue cheque books or grant access to internet banking platforms in order to conceal fraudulent transactions and debit entries.

The company stated that though it had cleared all its loan obligations to Sterling Bank by July 2017, the bank “booked” an unsolicited $30 million loan into its account barely three months later.

According to Miden, the bank fabricated an offer letter, purported board resolutions, and forged signatures to give the appearance that the loan was duly accepted. The same day the loan was booked, Sterling’s board allegedly approved and disbursed the facility.

“On the following day, over $1 million was transferred to one ‘AA’, and two days later, more than $29 million was disbursed to the same individual. Miden never applied for this loan, never accepted it, and the signatures used were forged,” the complaint alleged.

The firm also cited another case in which Sterling Bank allegedly booked a $3 million loan to Chasewood Limited. When Chasewood denied ever applying for the facility, the bank allegedly reclassified it under Miden’s account, claiming the two firms were “sister companies.” Miden insists Chasewood is an entirely separate entity.

Miden said it was further alarmed to discover documents suggesting that the bank had purportedly secured a loan facility from Afrexim Bank using forged signatures and identities of persons unknown to its directors. It also alleged that Sterling Bank fraudulently opened additional accounts in its name using a fictitious office address at No. 10 Goba Close, Wuse II, Abuja—an address the company claims it has no link to.

Frustrated by failed attempts to resolve the issues, Miden petitioned the House of Representatives Committee on Public Petitions. The committee, after reviewing the matter, referred it to the Inspector General of Police for investigation. A police investigation report, issued in February 2025, allegedly indicted Sterling Bank and the named defendants.

With the case now before the Chief Magistrate’s Court in Abuja, hearing is set to resume on September 10.

Source: National Waves