The former boss and chief operating officer of Afren, a London-listed oil and gas exploration business, are to be charged with criminal offences in relation to an alleged £45m fraud that led to the collapse of the £2bn company.
Osman Shahenshah, 55, the ex-chief executive, and Shahid Ullah, 58, formerly chief operating officer, appeared in Westminster magistrates court on Tuesday charged with two counts of money laundering and two counts of fraud. They will face the charges formally on Wednesday.
The Serious Fraud Office said the men stood accused over payments they received via secret companies they controlled relating to over $400m of Nigeria business deals.
“The alleged fraud is claimed to have led to the collapse of the $2.6bn oil giant by their administrators, who in related civil claims are seeking damages in excess of $500m from the defendants and a Nigerian associate,” the SFO, which launched an investigation two years ago, said in a statement.
Afren, which was a FTSE 250-listed company until it collapsed in 2015, reported itself to the SFO after details of the alleged secret payments were detailed in an independent review by the US law firm Willkie Farr & Gallagher.
Lawyers for the men did not immediately respond to requests for comment. A lawyer for Shahenshah told the FT: “My client is fully aware of the proposed charges, which are considered to be without foundation. Accordingly, they will be vigorously defended.” Ullah has previously denied the charges.
