Alleged Fraud: Between Homeowners And Kelechukwu Mgbagwu of CMB

Mr. kelechukwu Mbagwu, Owner of CMB Building Maintenance and Investment Co. Ltd, is locked in a legal battle with homeowners in two Lagos estates over accusations of fraud levelled against him and his firm.  Some estate associations and homeowners of Pearl Nuga Park Estate and Pearl Garden Estate located at Sangotedo Village in Eti-Osa Local Government Area of Lagos State, levelled the accusations over two estates developed and managed by CMB.

In two separate petitions signed by Mr. Patrick Olowokere, the President of Pearl Nuga Estate and Reverend Adesola Adebawo, President of Pearl Garden Estate dated May 28, 2019, and addressed to the Economic and Financial Crime Commission (EFCC), accused Mr. Mbagwu and his firm of criminal breach of trust, unlawful enrichment, and conversion of their properties.

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The petitioners alleged that CMB Building Maintenance and Investment Co. Ltd obtained a loan from Wema Bank Plc using homes belonging to the affected homeowners as collateral without the knowledge or consent of the homeowners.

“CMB and Mr. Mbagwu fraudulently withheld the title deeds of the houses from the affected homeowners as it withheld those of several other homeowners within the estate,” the petition alleged.

The affected homeowners said they paid CMB in advance and had at separate times taken possession of these homes when they were completed.

Trouble started when Wema Bank Plc in a bid to recover loan owed the bank by the estate developer (CMB), took possession of six homes within Pearl Nuga Estate belonging to the petitioners whose names were given as: Bridget Eko, Osagie Aimiehnoho Jude, Mr Akinola Alabi and Mrs. Oluwadara Alabi, Nosakhare Igbinobi and Amos Gaga, thereby necessitating the petition.

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The Pearl Nuga Estate association also claimed that other homeowners within the estate may be victims of alleged “similar fraudulent mortgages” by CMB.

Similarly, homeowner’s association of another estate, Pearl Garden Estate also alleged that CMB used homes fully paid for by some its members to obtain a N10 million loan from Diamond (Access) Bank.

As the dispute raged, homeowners in the two affected estates announced they have sacked CMB Building Maintenance and Investment Company Limited as their estate managers.

WHO IS KELECHUKWU MBAGWU?

Mr. kelechukwu Mbagwu is a businessman and the Chief Executive Officer of a Lagos based real estate firm CMB Building Maintenance and Investment Company Limited. He is also the president of Nigeria Rugby Football Federation (NRFF), and member of Corona School Trust Council.

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CMB REACTS TO THE ALLEGATIONS

THE WHISTLER reached out to Mr. Mbagwu to get his reaction. At first one Mr. Elvis Elimi called this newspaper on behalf of Mr. Mbagwu but failed to confirm nor deny the allegations, he simply said that the matter is in court and therefore subjudice. But the next day, a staff of CMB who gave her name as Ifeoma Ogoh reached out to THE WHISTLER and explained that the issue was merely a business disagreement between CMB and their bankers which the estate homeowners took advantage of.

“We are client to the bank, issues come up. The bank was only out to embarrass CMB”

“What the bank did on the 21st of May was abuse of court process, there is no possession order against the properties of the company.’’

“They (Wema Bank) came by motion ex-parte, and their prayer is to take possession and stop the company from continuing their financial dealings, and the court did not grant it, the court never granted an order to the bank for possession.”’

She also informed this medium that the actions of the homeowners and resident associations of the affected estates was solely out of the urge by the resident of the two estates to take over the maintenance of the Estates.

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“The company reached out to the residents, but they refused to meet with the company to dialogue on the issue” she said

She debunked the allegation that CMB withheld the title deeds belonging to the homeowners and used same as collateral. “Pearl Nuga residents simply refused to pay for title documents” she added.

THE WHISTLER reached out to Wema Bank for reactions, but the bank is yet to respond to our request for comments as at press time.

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