Tax Evasion: Absence of Binance official, Gambaryan, stalls arraignment

For the third time, the arraignment of Binance Holding Limited and it’s official, Tigran Gambaryan, on tax evasion charges brought against them by the federal government failed to hold due to the absence of the defendants at the federal high court Abuja. The company, alongside its officials, Tigran Gambaryan (2nd defendant)and Nadeem Anjarwalla (3rd defendant)who fled the country on March 22, 2024, were dragged to court for tax evasion by the Federal Inland Revenue Service (FIRS). FIRS, had in the suit marked: FHC/ABJ/CR/115/2024, preferred on them a 4-count charges of failing to register with the FIRS for the purpose of paying all relevant taxes administered by the service. The FIRS also alleged that while it was offering taxable services to subscribers on its trading platform, the company failed to issue invoices to the subscribers for the purposes of determining and payment of its Value Added Taxes. In the last adjourned date, Counsel for the FIRS, Moses Ideh, served the second defendant, Gambaryan with the charges, with the leave of the court, as the case was adjourned for his arraignment. However, in Thursdays proceedings, Gambaryan failed to appear in court The Counsel for the second defendant Chukwuka Ikwuazo (SAN), said he was not in court because the correctional service was yet to bring him. He asked for a stand down to find out what might have happened. Moses Ideh, representing the FIRS, expressed displeasure over the failure of the defendant to show up and opposed a stand down on the matter. He accused the defense counsel of knowing his client was not going to be present in court and not doing enough to make him available. Ikwuazo (SAN), who denied the claims, said the defendant is in the custody of the Correctional service and they are to blame for not providing him. He then asked for an adjournment and promised to ensure that the defendant is present in court on the next adjourned date. The motion for adjournment was not opposed by Ideh or T.J. Krukrubo (SAN), who represented the first defendant. Justice Emeka Nwite therefore adjourned the matter till July 14, for arraignment. It would be recalled that two executives of the company were arrested and detained after they flew into the country as a result of a ban on their website, by the Nigerian government, over allegations of handling illicit flow of cash through their platform. A Federal High Court in Abuja subsequently ordered Binance to provide the Economic and Financial Crimes Commission (EFCC) with comprehensive information on all persons from Nigeria trading on its platform. This led to a spat between Binance and the Nigerian authorities who detained two of Binance’s executives upon arrival into the country. Nadeem Anjarwalla, one of the detained Binance executives escaped to Kenya according to Interpol and was tried in absentia. Documents for his Extradition to Nigeria have been prepared by the Interpol. The Crypto exchange company now faces two separate cases, with that of the EFCC, billed to continue tomorrow.

Kenyan Police Arrest Binance Executive Who Escaped From Nigeria

The Kenya Police Service has successfully apprehended a senior executive of Binance, Nadeem Anjarwalla, who had been on the run, as efforts to extradite him to Nigeria gain momentum. This development was confirmed by government sources on Sunday night, who spoke to Punch under the condition of anonymity due to restrictions on their authority to discuss the matter publicly. One of the sources said, “Binance executive, Nadeem Anjarwalla, has been arrested by the Kenya Police Service, and he would be extradited to Nigeria this week by INTERPOL.” Another source noted, “As we had said before that Anjarwalla would be extradited, he has been arrested in Kenya, and he’ll be extradited to Nigeria this week.” Recall that the Federal Government revealed that it traced Anjarwalla to Kenya, following his escape from lawful custody in Nigeria. A source that spoke on the development at the time said, “We have found him. We know where he is; he is in Kenya, and we’re working with the authorities to bring him back to Nigeria. “All hands are on the deck, the government and all the security agencies are working hard in conjunction with the Kenyan authorities and INTERPOL, to ensure his return to Nigeria to face the charges brought against him.” Meanwhile, the EFCC Chairman, Ola Olukoyede, had in the March edition of its bulletin titled, “EFCC Alert,” confirmed that the commission was working in conjunction with the International Criminal Police Organisation, the United States’ Federal Bureau of Investigation, the governments of the United Kingdom, Northern Ireland, and Kenya to extradite Anjarwalla. Olukoyed said, “The takeover of the prosecution of Binance chiefs by the commission is no less a strong message in the direction of EFCC’s resolve to hedge in distortions and disruptions in the country’s forex market. “Tax evasion, currency speculation, and money laundering to the tune of $35,400,000 and are at the foundation of the Commission’s five counts against Binance Holdings Limited, Tigran Gambaryan and Nadeem Anjarwalla, the company’s chief executives. “While Gambaryan is currently in the Commission’s net, the process of extraditing the fleeing Anjarwalla is revving in full swing. Involved in partnership with the EFCC to nick Anjarwalla in flight are the International Criminal Police Organisation, the United States Federal Bureau of Investigation, the governments of the United Kingdom, Northern Ireland, and Kenya as the clock winds down to his arraignment in absentia alongside the company and Gambaryan.”

Non-service of charge stalls Binance, executives arraignment by FIRS, EFCC

The arraignment of Binance Holdings Limited and two of its executives; Tigran Gambaryan and Nadeem Anjarwalla, Thursday, stalled over non-service of charge by the Federal Inland Revenue Service (FIRS). FIRS is prosecuting the defendants on a four-count charge bordering on alleged tax evasion. Similarly, the Economic and Financial Crime Commission (EFCC) arraignment of the defendants on a five-count charge bordering on money laundering couldn’t be held because of the non-service of charge on the first defendant. The EFCC, in the charge, dated and filed on March 28, the defendants are being accused of money laundering to the tune of $35,400,000. When the matter was called for the defendants to take their plea before Justice Emeka Nwite of a Federal High Court, Abuja, only Gambaryan was represented by a lawyer. The company and Anjarwalla, who recently escaped from lawful custody, were not represented by any lawyer. However, Gambaryan’s lawyer, Chukwuka Ikwuazo, SAN, told the court that his client had not been served with the charge. Hence, his arraignment can not proceed. In his response, counsel to FIRS, Moses Ideho, though acknowledged that the agency had not served Gambaryan’s with the charge, he said all efforts to do so proved abortive because the defendant could not be reached at the EFCC’s detention. Ideho then prayed the court to serve Gambaryan in the open court, and the judge directed that the charge be served on him in the dock. He orally applied for a stand-down of the matter or an adjournment to enable Gambaryan to consult with his lawyer. Ikwuazo did not object to an oral application for adjournment, and the matter was adjourned until April 19 for him to take his plea. In the charge marked FHC/ABJ/CR/115/2024, dated and filed March 22 by the FIRS, the defendants were alleged to have committed the offence on or about Feb. 1. Count one alleged that while involved in carrying and offering services to subscribers on their platform, known as Binance, failed to register with the FIRS, for the purpose of paying all relevant taxes administered by the service. The offences are said to be punishable under Sections 8 and 29 of the VAT Act of 1993 (as Amended), Section 40 of the FIRS Establishment Act, 2007 (as amended) and under provisions of Section 94 of the Companies Income Tax Act (as amended) respectively. Meanwhile, the EFCC, in the first count, claimed that the defendants were charged with operating a specialised business of another financial institution in Abuja without a valid license between January 2023 and January 2024. The offence is alleged to violate Sections 57(1) and (2) of the Banks and Other Financial Institutions Act, 2020, and is punishable under Section 57(5) of the same Act.

NSA confirms Binance executive’s escape 

The National Security Adviser’s Office has confirmed that Nadeem Anjarwalla, a detained executive from Binance, has fled from custody.  Anjarwalla, implicated in an investigation into Binance’s operations, escaped last Friday, as per the ONSA’s announcement on Monday.  This confirmation follows an earlier report by Starnews Ng detailing Anjarwalla’s escape.  Zakari Mijinyawa, Head of Strategic Communication at ONSA, affirmed the development in a statement, disclosing that preliminary findings indicate Anjarwalla departed Nigeria using an illicitly obtained passport.  Efforts are underway to apprehend the fugitive. The statement read, “The Office of the National Security Adviser confirms that Nadeem ANJARWALLA, a suspect in the ongoing criminal probe into the activities of Binance in Nigeria has escaped from lawful custody on Friday, March 22, 2024. “Upon receiving this report, this office took immediate steps, in conjunction with relevant security agencies, MDAs, as well as the international community, to apprehend the suspect. Security agencies are working with Interpol for an international arrest warrant on the suspect. “Preliminary investigation shows that Mr Anjarwalla fled Nigeria using a smuggled passport. ” Mijinyawa noted that those responsible for the custody of Anjarwalla had been arrested. He noted that the investigation was ongoing to unravel the circumstances surrounding his escape. “The personnel responsible for the custody of the suspect have been arrested, and a thorough investigation is ongoing to unravel the circumstances that led to his escape from lawful detention. “Recall that the Federal Government of Nigeria, like other governments around the world, has been investigating money laundering and terrorism financing transactions perpetrated on the Binance currency exchange platform. “Until his escape, Nadeem Anjarwalla, who holds British and Kenyan nationalities and serving as Binance’s Africa regional manager, was being tried by Nigerian courts. The suspect escaped while under a 14-day remand order by a court in Nigeria. He was scheduled to appear before the court again on 4 April 2024” the statement added. He urged Nigerians and the international community to help with information that could lead to the arrest of the suspect. Mijinyawa said, “We urge the Nigerian public and the international community to provide whatever information they have that can assist law enforcement agencies to apprehend the suspect.” Financial Times had on February 28 reported that two executives of the company were arrested and detained after they flew into the country as a result of a ban on their website.