Eastern Metals Limited and its former Chief Operating Officer, Mr. Sandeep Gogia, have been absolved of allegations related to fraud and obtaining funds under false pretenses by the Court of Appeal in Lagos.

Eastern Metals Limited and Mr. Sandeep Gogia had lodged an appeal with the Court of Appeal to reverse the verdict of the Lagos High Court, presided over by Justice Lawal-Akapo, which had previously found them guilty of conspiracy to commit a felony and obtaining money through false pretenses.

The case originated from a dispute initiated by Boars Marketing Communication Limited and the Federal Government of Nigeria against Eastern Metals concerning a troubled business transaction. In 2016, Justice Akapo had declared both Eastern Metals and Sandeep Gogia guilty, resulting in Sandeep’s incarceration and a shutdown order of Eastern Metals Nigeria.

In their appeal, Eastern Metals and Sandeep Gogia clarified the situation presented in the lower court. They explained that they had engaged in a business transaction with Boars Communication on July 14, 2015, involving the purchase of two hundred and fifty thousand US dollars. Boars Communication had duly transferred the equivalent amount in naira, totaling fifty-nine million, seven hundred and fifty thousand naira, to the appellants’ bank account.

However, the appellants had received instructions via email from Boars Communication, requesting that the purchased sum be transferred to an international account to avoid unfavorable bank charges. In keeping with past practices, Eastern Metals complied, unaware that Boars Communication’s online security had been allegedly compromised.

In the ruling delivered by Justice Tijanni Abubakar, the Court of Appeal concluded that the dispute between Eastern Metals Limited and Boars Communication was a case of a failed commercial transaction, not a criminal offense.

According to the judgment, “based on all the available evidence, the dealings between the appellants and the complainants constitute a failed civil commercial contract.” Consequently, the judgment of the lower court was overturned.

Similarly, the civil suit filed by Boar Marketing Communications limited against Eastern Metals Limited and Sandeep Gogia, to recover the sum of $250,000.00 (Two Hundred and Fifty Thousand United States Dollars), was dismissed in its entirety by Honourable Justice Fadipe of the Ikeja Division of the High Court of Lagos State, in a well-considered judgment delivered after full trial, on 13th February 2023.

The court held inter alia that there is evidence payment of $250,000 by Eastern Metals to the account nominated by Boar Marketing Communication Limited via their email and as such, the Eastern Metals and Sandeep Gogia, duly discharged their contractual obligation to Boar Marketing Communication Limited in respect of the transaction.