An individual orchestrated the downfall of an entire bank by selling his employer a fictitious airport for an astonishing $242 million.
Emmanuel Nwude, who once held the position of director at the Union Bank of Nigeria, had a comprehensive understanding of the financial sector, which he exploited to his benefit.
On a particular day, Emmanuel made a phone call to Nelson Sakaguchi, a director at the Brazilian bank Banco Noroeste.
During the call, the fellow bank director impersonated someone significant – Paul Ogwuma, the governor of the Central Bank of Nigeria at that time.
Emmanuel claimed that he was engaged in constructing a new airport and required financial assistance.
Sakaguchi likely viewed the situation from a business perspective, as he stood to earn a $10 million commission if Emmanuel secured the requested funding.
Without conducting adequate background checks, the banker agreed to the arrangement, resulting in Emmanuel receiving a total of $242 million between 1995 and 1998 for an airport that was never verified to exist.
In 1997, as Banco Noroeste was on the verge of being acquired by banking giant Santander, discrepancies began to emerge.
Half of the company’s funds were initially situated in the Cayman Islands, and they were also financing a man for an airport that did not exist.
The bank was on an irrecoverable path to collapse, ceasing operations in 2001.
Upon realizing the magnitude of the scam, criminal investigations were initiated to uncover how Emmanuel defrauded the bank of $242 million.
Though the sale with Santander was finalized, it came at a significant cost to Banco Noroeste, from which they could never recover.
Three years post-bankruptcy, Emmanuel and his associates faced trial, but the 2004 case was dismissed, leading to their re-arrest to face charges in a different court.
The group ultimately confessed to over 100 charges of fraud and bribery, despite a last-ditch bribery attempt by Emmanuel.
Emmanuel attempted to offer a $75,000 bribe to evade consequences after an accomplice confessed, but this only worsened his situation.
He received a 25-year prison sentence for his fraudulent activities but was released early in 2006.