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Expatriate Managing Director Drag to Court Over $8,619,997.00 Fraud


In a bid to recover the sum of $8,619,997.00 alleged to have been fraudulently converted by its former expatriate Managing Director, Deepak Khilnani, a limited liability company Green Fuels Limited has renewed its legal battle against said former Boss.
The expatriate who resides both in Nigeria at 21 Adeniyi Jones Avenue Ikeja Lagos and in United Kingdom at 7c Pembridge Villas, London W113EN. was alleged to have been convicted in London for;
1. False accounting
2. Making false statement to auditor 3.trading with intent to defraud creditors,and did not disclose his prior conviction throughout his affairs with the Green Fuels company.
In an amended statement of claim filed before the court by the  Law firm of Argyle &Clover, It was alleged that, At the company's Board of Directors meeting held on 15th March 2012,the company's Auditor, the firm of Omogoroye, Akin Popoola &Company presented the Company with the Audited Financial Statements for the year ended 31st March, 2011 which revealed weakness in the Company's system of accounting and internal control which resulted in defalcations that the audit test may not necessarily detect.
After the presentation, the Directors raised questions bordering on fraud and other financial malpractices and it was directed that the Auditors review the validity and accuracy of the financial transactions and supporting documents for same which led to preparation of the auditor’s report dated 27th March 2012.
Prior to the Auditor's report, there was due diligence exercise conducted by Wale Makjolagbe, an Economist and chartered Accountant with Lexcel Group on the  financial activities of the company and his report revealed that the Compressed Natural Gas company, another distribution company in Nigeria which will entails procurement of equipment formed by the promoters of the Green fuels company, was mandated to procure equipment through GENTEC ENERGY PLC, a company  formed and owned  by the defendant was to procure equipment on behalf of the plaintiff and deliver same in Nigeria, but invoices were overpriced/over-invoiced.
It was subsequently discovered that the defendant breach the fiduciary duties owed to the plaintiff Company as a Director by using Gentec Energy Plc (Khilnani's) as a front/shell company to inflate the costs of Compressed Natural Gas Equipment packages thereby defrauding the Green Fuels company.
Thereafter, it was resolved that an independent forensic audit should be carried out, KPMG Advisory Services was engaged to conduct a comprehensive forensic examination of all the company's financial transactions from 1st of January 2008 to 31st of July 2013 when the Defendant was alleged to be the Managing Director of the company.
The forensic audit revealed that the total amount of fabricated sums and over invoiced sums is $8,619,997.00
The plaintiff company alleged further that, as a result of the inflated sum/over-invoice, the company suffered financial loss higher incidental costs including custom duties, letter of credit commission, Insurance fee and other financial charges relating to opening of letter of credit in view of the fact that these charges are usually calculated as percentage of the declared value of the equipment
The Company contended that the defendant abused his office as Managing Director and committed these fraudulent acts and breach of Director's duty when he was in charge of the day to day management of the company and has now absconded to United Kingdom after his fraudulent actions had been discovered by the company.
Consequently, the company's claims against the defendant are as follows :
A declaration that the defendant breach his fiduciary duty owed to the company under sections 279 and 280 of Companies and Allied Matter Act by allowing his personal interest to conflict with his duty as Director of the company.
Payment of the sum of $8,619997.00 being the over -invoiced amount based on the quotes received from the manufacturers/Supplier of equipment
General damages in the sum of $12 million US Dollars for loss suffered by the company as a result of the Defendant's fraudulent actions.
The presiding judge, Saliu Saidu has adjourned till 12th October, 2016 for hearing.

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