Ecobank Faces $68m UAE Lawsuit Over Defamation, Coercion Allegations

 

Ecobank Transnational Incorporated (ETI), its CEO Jeremy Awori, and two affiliated entities are entangled in a $68 million legal claim filed in the United Arab Emirates (UAE).

The suit, brought by Wilben Trade and its CEO Marcus Wade, accuses the bank of defamation, coercion, and abusive legal proceedings stemming from a 2015 financial dispute.

The lawsuit also names ETI Specialized Resolutions Company (ETISRC), Ecobank Nigeria (ENG), and Oladele Alabi, Managing Director of ETISRC, as co-defendants.

At the heart of the claim are allegations that Ecobank attempted to coerce Wilben Trade into making significant payments to ENG and ETISRC following a $42 million loss incurred in transactions involving Agrico Agbe Limited and Little Rose Trading LLC.

Wilben Trade, which describes itself as merely an intermediary facilitating the discounting of Letters of Credit at Ecobank’s request, denies any responsibility for the losses.

The company contends that Ecobank’s actions amount to an “extortion campaign” aimed at recovering funds from an uninvolved party after failing to reclaim the losses from the original debtors.

The situation escalated further in 2022 when ETISRC lodged a complaint with the Nigeria Police Force, accusing Wilben Trade of conspiracy and fraudulent conversion.

Wilben Trade has dismissed these allegations as baseless, accusing Ecobank of exploiting public institutions in Nigeria for private objectives.

Marcus Wade’s legal counsel, Lateef Omoyemi Akangbe SAN, criticized Ecobank’s tactics, stating: “Our client is committed to seeking redress through international legal action to counter Ecobank’s abusive strategies and to repair the harm caused by its baseless complaints.”

Wilben Trade alleges that repeated offers for dialogue to resolve the matter have been rebuffed by Ecobank, further intensifying the dispute.

In response, Ecobank denied the allegations of extortion and emphasized that the issue is subject to ongoing litigation in Nigerian and Indian courts.

The bank stated: “This matter involves an established case of fraud against the Ecobank Group, with the accused individuals currently being prosecuted by relevant authorities in Nigeria. Consequently, Ecobank cannot comment further at this time.”

Ecobank also clarified that its parent company, ETI, is not a direct party to the litigation but reserves the right to pursue legal remedies against defamatory claims.