Binance executive challenges EFCC charge, court adjourns to April 8
Gambaryan opposed the move to be arraigned, insisting that the EFCC, having not served Binance, listed as 1st defendant in the charge, can't arraign him.
Binance executive in court
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Gambaryan, through his lawyer, Mark Mordi, SAN, opposed the move to be arraigned before Justice Emeka Nwite, insisting that the EFCC, having not served Binance, listed as 1st defendant in the charge, cannot arraign him.
The News Agency of Nigeria (NAN) reports that the anti-graft agency had filed a money laundering charge against Binance, Gambaryan and Nadeem Anjarwalla (now at large) as 1st to 3rd defendants respectively.
Anjarwalla was said to have fled Nigeria after he escaped from lawful custody on March 22. In the five-count charge dated and filed on March 28 by the anti-graft commission, the trio is being accused of money laundering to the tune of $35,400,000.
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When the matter was called on Thursday for the defendants to take their plea, only Gambaryan was in court. The EFCC’s lawyer, Ekele Iheanacho, informed the court that the matter was slated for arraignment and that the defendants had been served for them to take their plea.
But Mordi disagreed with Iheanacho's request. He said the reading of the charge was premature because the charge was a joint one. The senior lawyer argued that Iheanacho was duty-bound to do the needful since Binance, listed as 1st defendant, had not been served.
He insisted that since it was a joint charge, the company must be duly served before his client could take his plea. Responding, Iheanacho disagreed with Mordi, saying since Gambaryan is the representative of Binance in Nigeria, it is the law that he can be served on behalf of the firm.
According to him, if the company does not show up, a non-guilty plea can be entered for it by Section 478 of the Administration of Criminal Justice Act (ACJA), 2015.
“My lord, we can proceed with the trial when he is the representative of the 1st defendant in Nigeria,” he said.
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Mordi, however, argued that Iheanacho conveniently omitted the preceding section to Section 478 cited. He argued that by Section 477 of the same Act, Binance had to authorise Gambaryan to represent it before the service of the charge could be said to have been duly served.
Besides, he said each of the defendants ought to be served separately.
“Section 478 cannot be read without Section 477. My humble submission is that due process has not been followed my lord,” he stated.
The EFCC counsel argued that despite Mordi’s stand that he was not briefed by the company, his submission suggested that he was holding brief for it.
He said the anti-graft agency attempted to serve the company through Gambaryan but he refused, saying he was not its representative. Iheanacho, who said the proof of evidence attached to the charge confirmed that Gambaryan is a Binance representative in Nigeria, urged the court to discount Mordi's argument.
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Besides, he argued that refusal of service of court processes also amounted to the service of the documents. He said Mordi himself confirmed that though Gambaryan was duly served, he refused the service.
“Therefore, it is not in the position of the counsel for the 2nd defendant (Gambaryan), who has not announced appearance for the 1st defendant (Binance) to seek to challenge the arraignment on the ground that the 1st defendant has not been served because the 2nd defendant was not briefed by the 1st defendant,” he stated.
Mordi however denied that he admitted true service was effected on Gambaryan. He said that based on the community reading of Sections 123, 477 and 478 of ACJA, 2015, a mandatory process must occur where criminal proceedings are triggered.
He said Gambaryan was neither a Binance director, one of the partners nor a company secretary. According to him, he does not reside in Nigeria to qualify as an agent within the jurisdiction.
But Iheanacho countered his submission, insisting that Gambaryan is the chief agent of Binance in the country. He argued that based on the provisions of the law, though the firm had no physical presence in the country, its representative could be served.
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“It is a settled principle of law that the law does not allow or command a party to do an impossibility
“So a party who has no physical presence in Nigeria must have a physical agent in Nigeria.
“The good thing about the law is that it allows for substituted service
“Section 124 provides for a substituted service on an individual and not on a corporation. The learner Silk has not studied the section well
“Therefore, Section 123(b)(IV) has been complied with since the chief agent is in court.
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“So my lord, service on the 1st defendant which he refused to accept is a proper service on the 1st defendant,” he argued.
He further argued that Mordi cannot be holding brief for Binance having not appeared for it.
“So we urge you to discountenance all the submissions made by counsel. They cannot do so
“We urge you to enter a plea of non-guilty for the 1st defendant and proceed a trial in this matter,” he prayed.
Justice Nwite, who adjourned the matter until April 8 for ruling, ordered Gambaryan to be remanded in EFCC’s custody pending the arraignment.
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