{"id":113793,"date":"2024-08-10T21:05:16","date_gmt":"2024-08-10T20:05:16","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=113793"},"modified":"2024-08-10T21:05:16","modified_gmt":"2024-08-10T20:05:16","slug":"how-union-bank-fraudulently-sold-customers-n142m-valued-property-for-n30m-after-he-died-before-repaying-his-loan","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/how-union-bank-fraudulently-sold-customers-n142m-valued-property-for-n30m-after-he-died-before-repaying-his-loan\/","title":{"rendered":"How Union Bank fraudulently sold customer\u2019s N142m-valued property for N30m after he died before repaying his loan"},"content":{"rendered":"<div id=\"m#msg-f:1807022151169350173\" class=\"mail-message expanded\">\n<div class=\"mail-message-header spacer\" style=\"text-align: justify;\">A Lagos High Court has found the sale of a property used by Otunba Adedoyin Olayide Ogunde, a deceased Union Bank customer, as collateral for a loan taken in 1995, as fraudulent.<\/div>\n<div class=\"mail-message-content collapsible zoom-normal mail-show-images \" style=\"text-align: justify;\">\n<div class=\"clear\">\n<div dir=\"auto\">\nJustice I.O. Harrison of Court 18, Lagos State High Court, delivered a judgement in a case instituted by the beneficiaries of the estate of Ogunde against the bank on May 31.<\/p>\n<p>Ogunde, the owner of the buildings, died in 1997. He had not liquidated a N7 million loan taken from Union Bank on May 23, 1995 and for which he had mortgaged his compound of buildings located at\u00a0<a href=\"https:\/\/www.google.com\/maps\/search\/6+Moore+road?entry=gmail&amp;source=g\">6 Moore road<\/a>, off Bourdillion road, Ikoyi, Lagos State. Ikoyi is a pricey area in Lagos that is home to multi billionaires.<\/p>\n<p>The property consisted eight units of four-bedroom flats and a penthouse, a 10-bedroom family house and a three-storeyed building consisting 3-bedroom flats.<\/p>\n<p>To recover its money, the bank sold the property through a private treaty without a recourse to the procedural steps dictated by applicable mortgage laws.<\/p>\n<p>\u25cf FRAUDULENT SALE AND COURT LITIGATION<\/p>\n<p>Before his death, Ogunde had prepared a final will and appointed some individuals as personal representatives and executors of the will.<\/p>\n<p>Ogunde mortgaged the property as a single entity. But the bank divided it into pieces and sold it to different buyers as different entities. Meanwhile, the bank had told the deceased\u2019s personal representatives that it was not going to partition the property before sale because it was mortgaged as a single entity.<\/p>\n<p>With the knowledge of the personal representatives, the bank sold the mini estate while Ogunde\u2019s children were mostly infants. When they became of age, they asked the court to declare the sale of their father\u2019s property by the bank illegal.<\/p>\n<p>Several years after the case, numbered LD\/2624\/1999, was originally filed, the trial commenced on September 18, 2018, according to the certified true copy of the judgement obtained by FIJ.<\/p>\n<p>In the suit, the Ogunde family contended that the sale and the processes relied on by the bank to dispose of their benefactor\u2019s property was characterised by fraud and collusion.<\/p>\n<p>Represented by O.V. Ekundayo, a legal practitioner, the family told the court that the assets were of a higher value than what the bank placed on it, and that there was a collusion between the bank and the purchasers.<\/p>\n<p>Built on 2.2 acres of land, the bank partitioned the property into Plots 6A, 6B, 6C and 6D. Plot A had nine flats and eight-roomed boys-quarters and sold to Cletus Ibeto, the chairman of Ibeto Group, a local company involved in cement production and other products, at an undervalued price of N30 million.<\/p>\n<p>The bank sold Plot B, with four units of four-bedroom flats and two-bedroom boys-quarters thereon, to Ogundayo Osundayo. The third plot, consisting four units of four-bedroom flats and two-bedroom boys-quarters, was sold to Wright. The last portion, Plot D, consisting three units of two-bedroom flats and an unstated number of boys-quarters, was sold to Unigate Investments. Together undervalued, these were sold for N30 million.<\/p>\n<p>\u25cf UNION BANK TO PAY FINES<\/p>\n<p>The mere fact that Ogunde defaulted in repaying the loan was no valid excuse for the bank to fling his property at ridiculous rates simply for the purpose of realising the debt owed; and doing so at a price that is so low is evidence of fraud, the court ruled.<\/p>\n<p>It further concluded that the bank had a lawful duty to deal with the property in good faith.<\/p>\n<p>\u201cThe only obligation incumbent on a mortgagee under a power of sale of his mortgage is that he should act in good faith,\u201d the judge said. \u201cThe court will always be on the lookout that the mortgagee acts bonafide and observes reasonable precautions to obtain not the best price, but a proper price.\u201d<\/p>\n<p>By the sale of Plot 6A, the bank had fully realised its money and had some balance to remit to the family. Without remitting the balance, it went ahead to sell the rest of the buildings.<\/p>\n<p>By going against what it had told Ogunde\u2019s personal representatives on the partition of the property, the court ruled that it was an argument that \u201cdoes not hold water\u201d.<\/p>\n<p>\u201cIt smacks of fraud, collusion and definitely does not show good faith,\u201d the court said.<\/p>\n<p>\u201cThe court cannot comprehend why the 6th Defendant (Union Bank) went ahead after the sale of Plot 6A for N30,000,000.00 (Thirty Million Naira) (wherein it had realized its debt, interest and costs and there was still a balance ensuing to the deceased\u2019s estate), to sell Plot 6B, 6C and 6D. Obviously, the intention was not to realize any outstanding indebtedness as none existent at that point. The court cannot help but find that the 6th Defendant acted recklessly and in bad faith.\u201d<\/p>\n<p>Union Bank further failed accountability principles when it withheld vital documents, including the deceased\u2019s statement of account, from the court, showing that those documents, if produced, could have impacted negatively on the bank.<\/p>\n<p>The judge also concluded that the buildings were grossly undervalued in the light of available market research surveys carried out in relation to similar property at the time.<\/p>\n<p>While the court did not set aside the transactions because no evidence showed there was a collusion between the bank and the purchasers, it ordered the bank to pay the family N112,050,000 being the difference in what could have been realised had the property not been undervalued by the bank.<\/p>\n<p>The bank was also ordered to an annual interest of 10% on the said amount from 1998 till the delivery of the judgement and from the date of judgement until the whole money is fully paid.<\/p><\/div>\n<\/div>\n<\/div>\n<div class=\"mail-message-footer spacer collapsible\" style=\"text-align: justify;\"><\/div>\n<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>A Lagos High Court has found the sale of a property used by Otunba Adedoyin Olayide Ogunde, a deceased Union Bank customer, as collateral for a loan taken in 1995,&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":58953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-113793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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