Unmasking Unfounded Allegations: Debunking EFCC’s Baseless Leatherback Investigation

Infostride News, the Economic and Financial Crimes Commission (EFCC) is mandated with the investigation of financial crimes. However, the decision to declare Ibrahim Ibitade, the CEO of Leatherback, as wanted raises questions about the agency’s approach in ensuring adherence to its mission.

Despite Leatherback’s collaboration in an ongoing fraud investigation, the EFCC took the unusual step of declaring Ibitade wanted through an Instagram post on Thursday afternoon. The post alleged that the 31-year-old CEO is wanted in connection with conspiracy and obtaining money under false pretenses.

Ibitade responded to the wanted notice by denying claims that he is in hiding and raising concerns about the agency’s actions. He drew a parallel, questioning whether the CEO of a commercial bank would be declared wanted if an account issued by the bank is used for fraudulent activities.

Leatherback, Ibitade’s company, functions as a digital bank providing accounts in various currencies, including Dollars and Pounds. The platform aids merchants and individuals in facilitating cross-border banking and payment needs across 12 countries.

Ibitade emphasized that Leatherback has consistently cooperated with the EFCC, attending all meetings with the agency’s team. The company’s head of compliance has represented it in both the Lagos and Abuja offices of the EFCC. Over the past 60 days, the team has spent 35 days at the EFCC office, addressing inquiries and providing extensive documentation, with over 2,000 printed documents supporting the investigation.

In addition to its cooperation with the EFCC, Leatherback initiated an internal investigation and filed a Suspicious Activity Report (SAR) in the UK and Nigeria. Despite these efforts to demonstrate innocence and cooperate fully, the EFCC has continued to pursue the company and its CEO.

The roots of this situation trace back to the EFCC’s investigation into fraud allegations involving SDQ Facilitators, an account holder with Leatherback. The investigation, initiated a few months ago, revealed no special relationship between Leatherback and SDQ Facilitators beyond regular account services.

Leatherback, boasting over 50,000 users across its 12-country operations, issued NGN and USD accounts to SDQ Facilitators. The account facilitated the exchange of Naira deposits for USD, allowing SDQ Facilitators to initiate payouts to final beneficiaries from their USD account.

In September 2023, Leatherback received notification from the EFCC that the account maintained by SDQ Facilitators was possibly involved in fraudulent activities. Promptly, Leatherback began providing authorities with all necessary information to aid the investigation.

Leatherback’s findings revealed that SDQ Facilitators processed a significantly high volume of transactions from May to August, mirroring those processed by Hekima International, a previous account holder onboarded in late 2022. This suggested that Hekima may have redirected clients to SDQ Facilitators.

An internal investigation identified victims who were introduced to SDQ Facilitators by a Hekima associate when they were unable to process transactions on the platform. Leatherback delisted Hekima International in June 2023 due to risk and compliance concerns, triggered by third-party USD funds from a flagged sender in the USA.

SDQ Facilitators took over Fx transactions from Hekima until early August when Leatherback received a notification that its bank had suspended all USD transactions for about two weeks. This revealed SDQ Facilitators’ fraudulent practices, utilizing client funds for transactions while awaiting new funds.

Leatherback, inundated with requests from unknown clients, sought to confirm the status of transactions completed through SDQ Facilitators. It became evident that SDQ Facilitators had fraudulently collected funds from third parties under the guise of assisting with settling USD payments.

Despite the ongoing investigations and Leatherback’s efforts to clarify the situation, the EFCC continues to pursue the company and its CEO. The internal investigation uncovered intricate connections and patterns associated with the complex financial situation.

Declaring the head of a company cooperative in the investigation as wanted may seem futile, especially when the real perpetrators of the crime remain at large. Leatherback remains steadfast amid the controversy, committed to clearing its name and proving its innocence. The unfolding investigation aims to untangle the complex web of connections and shed light on the true culprits involved in this financial situation.