Court refuses to dismiss N2b fraud suit against Dantata, others

The Federal High Court sitting in Abuja on Thursday rejected a request by Dantata Success and Profitable Company (DSPC), Kano, to strike out the fraud case brought against it by the Security and Exchange Commission (SEC).

SEC has accused the DSPC and three others, operating in Kano, of committing about N2 billion investment fraud.

They were arraigned before Justice A. I Chikere on October 2020 on the allegation that they were involved in unlawful solicitation of funds from the people with a promise of unrealistic high returns to investors.

The accused were said to have persuaded about 7,250 persons to invest in their unregistered investment scheme to the tune of N2bn.

Prior to the court action, SEC had on 6th February 2019 sealed up the business premises of DSPC.

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It subsequently published a press release on its official website warning the public “to exercise utmost caution before subscribing to investment schemes by confirming the registration status of any company or individual and the investment products they are offering before entering into any transaction with them.”

But the defendants, through their lawyer, Abdulazeez Adams, filed a preliminary objection against the complainant.

In his objection, he prayed the court to order that the fraud charge against his clients is an abuse of court process.

He urged the judge to strike out the suit, adding also that her court lacked jurisdiction to entertain the charge.

Adams argued that all the defendants reside in Kano and conduct their businesses there and as such, they ought to be tried at the Kano division of the court in the interest of justice and fair hearing.

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But the complainant’s lawyer, I. Adeyemi, contended that the court action was not an abuse of process, adding the defendant cannot dictate where the complainant should file a court action.

In her ruling on Thursday, Justice Chikere said that the complainant coming to Abuja court for a case whose alleged offense took place in Kano was “surprising”.

She agreed that the Abuja court lacked jurisdiction to preside over the case and that the Kano division of the court was the right place the matter should be heard and tried.

However, the judge refused to strike out the charge but referred it to Kano division of the Federal High Court.

“The justice of this case can be attained if all parties are tried in Kano where the crime was allegedly committed

“I refuse the application to strike out this charge but I transfer same to Kano High Court division,” she said.

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