Appellant was the Managing Director of Abbey Life and Pension Consultants who were a firm of Consultants and Insurance Brokers. They entered into an agreement with the Nigeria Airways Authority (NAA) to broker an insurance policy to be placed with NICON- National Insurance Corporation of Nigeria.

Nigeria Airways paid the sum of N2.4m to Abbey Life and Pension Consultants in part payment of the premium payable to NICON but Abbey Life paid only N100,000.00 to NICON. When this became known to Nigeria Airways, it asked for a refund of the N2.4m representing part payment of commission and fees and demanded the balance of N1.4m

NICON in the meantime had refused to place the insurance until full payment of the insurance premium and this prompted Nigeria Airways to call in the Nigeria Security Organisation which detained the appellant. He was later charged under section 390 of the Criminal Code of Lagos State with stealing the money being the proprietor of the firm and the person who negotiated the insurance deal and who was also the sole signatory to the account of the firm.

Desalu, J. found him guilty and sentenced to 3 years imprisonment. He appealed to the Court of Appeal.