Court Orders Forfeiture Of £5m In Shares And Funds Linked To LivingTrust Mortgage Bank Plc And Its subsidiaries Over Ponzi Scheme Scandal.
In a significant victory for victims of financial fraud, Justice F. N. Ogazi of the Federal High Court in Ikoyi, Lagos, on Tuesday, 15 April 2025, ordered the final forfeiture of assets worth over N6.7 billion (£5 million) linked to a Ponzi scheme operated by Cititrust Holdings Plc and its subsidiaries. The ruling marks a major step in addressing fraudulent financial practices in Nigeria.
The court’s decision includes the forfeiture of 2,041,087,747 shares of Livingtrust Mortgage Bank Plc, formerly Omoluabi Mortgage Bank Plc, valued at N6,674,356,932.69 (£5 million). Additionally, sums of N42,461,096.66 (£31,000) and $26.44 (£20) held in accounts traced to Cititrust Holdings Plc were also forfeited. These assets were found to have been acquired using funds from defrauded investors.
The ruling followed a motion filed by the Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission (EFCC), represented by counsel Ahmad A. Usman. The EFCC had previously secured an interim forfeiture order and published details of the case in a national newspaper, inviting interested parties to contest the forfeiture. Cititrust Holdings Plc challenged the EFCC’s application through a motion and affidavit, but Justice Ogazi dismissed their objections, finding merit in the EFCC’s case.
Usman revealed that the shares were originally purchased from the Osun State Government by Cititrust using special purpose vehicles (SPVs) before being consolidated under Cititrust Holdings Plc. The EFCC’s investigation confirmed that the assets were funded by investors’ money through the company’s illicit activities, which were prosecuted as a Ponzi scheme.
In his judgement, Justice Ogazi ordered that the forfeited assets be used to compensate the victims of the scheme. Any remaining funds or assets are to be transferred to the Federal Government of Nigeria.
This ruling underscores Nigeria’s ongoing efforts to combat financial crimes and protect investors. The EFCC’s successful prosecution is likely to serve as a deterrent to similar fraudulent schemes, offering hope to victims seeking justice and restitution.
The case highlights the importance of regulatory oversight in the financial sector and the judiciary’s role in upholding accountability. For the victims of Cititrust’s Ponzi scheme, this forfeiture order represents a significant step towards recovering their losses.
