The Nigerian government filed an $875 million lawsuit against JPMorgan Chase & Co. for allegedly making payments to a convicted money launderer in an illegal oil deal, The Times of London reported Dec. 17.
The suit claims that, in August 2011, JPMorgan allegedly paid $801.5 million to Malabu, a company controlled by former Nigerian oil minister Dan Etete, who was convicted of money laundering, the publication wrote. Malabu was selling its exploration license, which was awarded to the company when Etete was a minister, to Shell and the Italian oil company Eni. JPMorgan was allegedly tasked with handling all the transactions related to that deal.
However, in its lawsuit filed with the High Court of London, the Nigerian government said the deal was just a tool to "perpetuate the sham" that Malabu legally acquired the license, the news outlet added. The lawsuit further claimed that JPMorgan "failed in its duty of care" and should have seen the red flags when multiple attempts to make payments to accounts in Switzerland and Lebanon were blocked.
JPMorgan, meanwhile, said the allegations were "unsubstantiated and without merit," The Times reported. The Nigerian government has also filed money laundering charges against Etete and Nigeria's former Attorney General Mohammed Adoke — both of whom are still at large.
The deal involving Shell and Eni is also under investigation by Italian prosecutors, the publication wrote.
