Miden Systems Limited has initiated a lawsuit against Sterling Bank Limited, its CEO, Sterling Financial Holdings Plc, and four members of its management staff.
The claims include conspiracy, fraud, forgery, breach of trust, and misappropriation of funds. The case was lodged at the Chief Magistrate’s Court in Wuse Zone II, Abuja, but was postponed until September 10 due to the NBA conference.
Details of Alleged Scheme
The 29-page petition, filed by lawyer Louis Alozie (SAN), alleges that the defendants are running a major fraud operation. They are alleged to have used fake accounts to siphon over $200 million, ignored account requests, placed unapproved liens, and cut off Miden’s access to funds. The bank is also accused of manipulating foreign currency remittances, devaluing the dollar holdings significantly.
Fraudulent Loans and Account Manipulation
Miden claims the bank fabricated a $30 million loan after it settled previous obligations—using forged documents and signatures. Over $1 million and more than $29 million were transferred to the same individual without approval. The company also disputes a $3 million loan to Chasewood Limited, which it says was reclassified under its account despite Chasewood denying any dealings.
Forgery and Fake Accounts
Further allegations include the bank securing a loan from Afrexim Bank through forged signatures. Sterling Bank is also accused of opening accounts using a fictitious address in Abuja, with Miden saying it has no link to that location.
Government Intervention and Police Investigation
Because of unresolved issues, Miden petitioned the House of Representatives. The committee referred the matter to the police, who, in February 2025, issued a report indicting Sterling Bank and the other defendants.
The case is scheduled for continuation on September 10 at the Chief Magistrate’s Court in Abuja.
