3 days Ago By Israel Ojoko
The Federal High Court sitting in Ikoyi, Lagos, has issued a final forfeiture order against 2,041,087,747 units of Livingtrust Mortgage Bank Plc shares, formerly known as Omoluabi Mortgage Bank Plc. The shares are valued at N6.67 billion.
Justice F. N. Ogazi further directed the forfeiture of N42.
46 million and $26.44, following investigations linking the assets to fraudulent activities by Cititrust Holdings Plc and its subsidiaries. Related Stories Alleged N3 billion Money Laundering: EFCC witness tenders exhibits against Yahaya Bello’s nephew, others Alleged N19.
4 billion fraud: Procurement Director testifies against Ex-Aviation Minister, Sirika The ruling came after a motion was filed by the Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission (EFCC) through its legal representative, Ahmad A. Usman. According to an EFCC statement, the shares and funds were acquired through questionable transactions traced back to Cititrust Holdings Plc—an entity previously flagged for operating as a Ponzi scheme, defrauding investors of substantial sums.
Justice Ogazi had earlier granted an interim forfeiture order, instructing the publication of the court’s decision in a national newspaper to allow interested parties to challenge the ruling. However, following a detailed review of the case, the EFCC argued that the assets were illicitly acquired using investors’ funds. The Commission’s investigation revealed that Cititrust Holdings Plc initially purchased the shares from Osun State Government through a network of Special Purpose Vehicles (SPVs)—an approach commonly used to obscure financial transactions.
These assets were later consolidated under Cititrust Holdings Plc’s official name. Despite attempts by Cititrust Holdings Plc to contest the forfeiture through a motion and supporting affidavit, the court found no merit in its argument. Justice Ogazi dismissed Cititrust’s claims, stating that the EFCC had presented compelling evidence proving the fraudulent origins of the assets.
In light of the findings, the court ruled that the forfeited funds and shares should be allocated to defrauded investors, ensuring financial restitution for those affected. Furthermore, any remaining assets will be surrendered to the Federal Government of Nigeria. There have been calls for stricter government regulation and enforcement against firms suspected of being fraudulent in their dealings following the recent collapse of the digital asset trading platform, CBEX.
During a virtual engagement hosted by Nairametrics on X (formerly Twitter), medical practitioner Dr. David Udoh shed light on the regulatory lapses that allowed CBEX to operate freely in Nigeria. “CBEX was not regulated by the Nigerian Securities and Exchange Commission (SEC).
The platform operated without registration, which is a clear violation,” Udoh stated. He attributed the platform’s success in exploiting investors to systemic issues such as unemployment, economic hardship, and widespread financial illiteracy..
