A company based in the USA has sued Groupe Nduom and 18 others, alleging money laundering and wire fraud.
[ads1]
Dr. Papa Kwesi Nduom, the founder and former flagbearer of the Progressive People’s Party (PPP), has been charged by Birim Group LLC, an equity fund and securities investment firm headquartered in the United States.
According to a writeup obtained by myjoyonline, Groupe Nduom, the umbrella corporation for 60 other companies operated by Dr. Nduom, is accused of laundering $63,000,000.
“The Nduom family defendants, by and through their ownership, control and use of defendants GN Bank, Gold Coast Fund Management and over 60 undercapitalised interrelated companies, collected several million dollars of depositor’s saving, investment contributions and insurance premiums, and in violation of U.S. and Ghana laws illegally laundered approximately $63,000,000 of depositors’ funds through its Virginia-based sham ‘procurement and consulting service’ company, International Business Solutions,” it stated.
The writ further claimed that Dr. Nduom’s activities would “put Bernie Madoff to shame,” and that the alleged “criminal scheme” involved “an international money wire system – of inflated, over-invoiced, and above-market rate fees disguised as payment for’management service’.”
The suit names Dr. Nduom, his wife Yvonne Nduom, their children, Nana Kweku Nduom, Edjah Nduom, and Nana Aba Nduom as defendants in their official capacities in the company.
“Plaintiff further alleges that Nduom family defendants dominate and control the Corporate Defendants and the related 60 or more companies, and in so doing, these entities commingle their funds and other assets and fail to segregate the funds of the separate entities. There is also the unauthorised diversion of corporate funds or assets to non-corporate uses”.
The plaintiff, Birim Group LLC, also claims that Groupe Nduom committed these crimes for the “sole personal financial benefit of the Nduom family” and that he used his companies to “facilitate the unlawful acts.”
The plaintiff argues that “a substantial portion of its [GN Bank] loans were illegally made to Nduom-related entities without the benefit of appropriate risk assessments, managements, or determinants,” and that “a substantial portion of its [GN Bank] loans were illegally made to Nduom-related entities without the benefit of appropriate risk assessments, managements, or determinants.”
“Groupe Nduom-GH (GN-GH) is owned, dominated, and controlled entirely by Nduom and his family for Nduom’s personal benefit. GN-GH was downgraded and reclassified from a commercial banking house to a Savings and Loans Company after failing to meet the regulator’s qualifying requirements.
“On or about August 16, 2019, its regulator, the Central Bank of Ghana, formally revoked its license.”
The plaintiff claims that Groupe Nduom’s companies engaged in “manipulation and liabilities” that culminated in the “diversion of assets from one business entity to the Nduom defendants and their other entities, to the detriment of creditors and depositors.”
Birim Group LLC, serving as assignors, is seeking “treble compensatory damages, as well as consequential, exemplary, and punitive damages in an amount to be determined by trial,” among other things.
They also want the court to order the defendants to disgorge “all profits, benefits, and other compensation obtained by defendants, including all ill-gotten gains from their illegal and criminal activities.”
In November 2020, a lawsuit was filed in Federal Court in Chicago against Dr. Papa Kwesi Nduom and others.
The Birim Group, which filed the complaint, is headed by Kwasi A. Asiedu, a Ghanaian lawyer.
Meanwhile, Nduom’s lawyers argue that “Birim Group LLC’s claims are without merit.” We have filed a motion to dismiss this frivolous lawsuit, and we will present our case to the Court.”
[ads2]
