MultiChoice Nigeria wins $16.23 million summary judgement against JNFX over fraudulent currency exchange transactions

In a fraudulent currency exchange transaction, MultiChoice Nigeria allegedly incurred a loss of ₦7.9 billion which was about $16.23 million in 2021, as revealed by a legal document. It is stated that MultiChoice will recoup the aforementioned sum inclusive of interest.

As reported by Premium Times, the dubious transaction involved the participation of Akintunde Giwa, a currency exchange dealer, JNFX Limited, a currency exchange company incorporated in England, and Ashay Mervyn, the representative of JNFX and also the director at Frontier Financial Technologies.

The judgement on this matter was heard remotely by Stuart Isaacs, in his post as a Deputy Judge of the High Court in the Business and Property Courts of England and Wales.

For its business operations, MultiChoice Nigeria reportedly sought the services of Giwa and his firms to assist with the conversion of naira to dollars. Giwa was entitled to a commission each time he helped in the exchange of Nigerian Naira for US dollars.

Operating under 10 contracts with MultiChoice, Giwa arranged to swap naira for dollars with JNFX. Commencing in early 2021, these contracts lasted until the tenth one concluded in September 2021. Mervyn, a JNFX representative, was primarily responsible for Giwa’s dealings with the currency exchange corporation.

As part of the currency exchange procedure, MultiChoice Nigeria paid ₦7.9 billion to Giwa, using bank accounts under his control. Giwa subsequently transferred these funds to JNFX via bank accounts designated by JNFX and its representative, Mervyn.

The total dollar equivalent of the transaction, amounting to $16.2 million, was reportedly supposed to be deposited into MultiChoice Africa’s account with the Standard Chartered Bank in London. However, Giwa made it clear that the business never received these payments in dollars.

Additionally, as of March 2024, Ashay Mervyn was declared wanted by the Economic and Financial Crimes Commission (EFCC). The declaration was issued on the grounds of “obtaining money under false pretence and fraudulent conversion of funds”.

In response to the dispute, JNFX claimed Mervyn did not have the authority to act as their agent or enter into the contract with MultiChoice. Meanwhile, Giwa argued that JNFX lacked a credible defense against allegations of deceit involving Mervyn and should be held accountable for his fraudulent actions.

JNFX also suggested lowering the sum claimed by Giwa to $8.4 million by taking into account some unaccounted dollar payments.

Despite JNFX’s defense, the court found that their arguments were not strong enough to refute the charges of deception. The court disregarded allegations from JNFX that Mervyn was unauthorized, pointing out evidence of his influential position within the company.

Giwa won summary judgment for his claims for damages and interest amounting to ₦7.9 billion. However, the court decided that the contractual claim against JNFX needed to undergo a full trial and, therefore, rejected the request for summary judgment on this matter.