Alleged N20bn Fraud: Court Strikes Out Charge Against Businesswoman, Firm

Stories by Steve Aya

Justice Akintoye Aluko of the Federal High Court, Lagos, has struck out a N20 billion alleged money laundering charge filed against a businesswoman, Taiwo Ibitola Taiwo, and her company, Lexhan Investment Limited.

The Defendants were arraigned on a four-count charge bordering on conspiracy, fraud, conversion, and retention of proceeds of crime by the Police Special Fraud Unit (PSFU).

In the charge sheet marked FHC/L/781/C/2025, the prosecution alleged that the Defendants, alongside others said to be at large, conspired on or before March 5, 2024, in Lagos to fraudulently convert shares and proceeds from assets reportedly bequeathed to Mrs Idowu Ashira and other beneficiaries by their late father. The Police further claimed that the converted funds, estimated at about N20 billion, constituted proceeds of crime. However, at the resumed hearing of the matter, prosecuting Counsel, M.Y. Bello, informed the court that the prosecution had filed an application dated February 26, 2026, seeking to withdraw the charge.

Counsel to the Defendants, Prof Taiwo Osipitan, SAN, did not oppose the application, but urged the court to dismiss the case outright to prevent the possibility of it being refiled. Citing Section 108(3) of the Administration of Criminal Justice Act, Prof Osipitan argued that where a charge is withdrawn before a Defendant is called upon to enter a defence, the court has the discretion to acquit the Defendant if deemed appropriate.

He further contended that the alleged offences predated the enactment of the Money Laundering Act, adding that the Defendants could not be prosecuted under a law that was not in force at the time of the alleged acts. According to him, the dispute was essentially a family matter involving inheritance and property rights, rather than a criminal issue.

 In response, Bello maintained that the withdrawal was in the interest of justice and urged the court to discharge the Defendants, noting that the prosecution should retain the right to revisit the case if necessary.

In his ruling, Justice Aluko held that since the Defendants had not appeared before the court and trial had not commenced, the appropriate order was to strike out the charge.

“The Defendants have never appeared before the court. Upon the notice of withdrawal dated February 26, 2026, this charge is hereby struck out and the Defendants are discharged”, the Judge ruled.