Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

JP Morgan sued for sending $875m to Nigerian money launderer

1 Comment
JP Morgan sued for sending $875m to Nigerian money launderer

JP Morgan is being sued by the Nigerian government for $875 million (£660 million) for allegedly being the middleman in an illegal oil deal, making payments to a convicted money launderer.

According to the Times, papers filed with the High Court claim that JP Morgan transferred money to a company controlled by former oil minister Dan Etete, who had previously been convicted of money laundering by French courts. He is also being pursued by Nigerian authorities.

JP Morgan is being accused of being ‘grossly negligent’ when it handed over more than $800 million ‘without proper application or regard to its obligations’.

Etete, who is owner of Malabu Oil & Gas, served under military dictator Sani Abacha in the 1990s. During his time as minister, Malabu was awarded an exploration licence. Later, an agreement was made for Malabu to give up to licence for a fee which would then be sold to Shell and Eni, with JP Morgan handling the transactions.

JP Morgan has stated: ‘We consider the allegations made in the claim to be unsubstantiated and without merit.’

Italian prosecutors have a separate case investigating the deal involving Shell and Eni. A judge is expected to decide whether the case will go to trial on Wednesday.

The Nigerian government has also brought money laundering charges against Etete and Nigeria's former attorney general Mohammed Adoke. 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter