A Federal High Court in Lagos has ordered the final forfeiture of more than ₦6.6 billion worth of shares and funds linked to Cititrust Holdings Plc and its subsidiaries, following allegations of operating an elaborate Ponzi scheme that defrauded unsuspecting investors.
The ruling, delivered by Justice F.N. Ogazi on Tuesday, finalizes the confiscation of 2,041,087,747 units of shares in Livingtrust Mortgage Bank Plc (formerly Omoluabi Mortgage Bank Plc), with a current valuation of ₦6,674,356,932.69. Additionally, the court ordered the forfeiture of ₦42,461,096.66 and $26.44 found in accounts associated with Cititrust.
The Economic and Financial Crimes Commission (EFCC), which brought the matter before the court, had earlier obtained an interim forfeiture order on the same assets. Following due legal procedure, the anti-graft agency published notices inviting any interested parties to come forward and justify why the assets should not be permanently forfeited. No sufficient counterclaims were accepted.
In its filings, the EFCC detailed how Cititrust Holdings and several affiliated entities had acquired the shares through complex transactions, including initial purchases from the Osun State Government via special purpose vehicles. These assets were later consolidated under Cititrust’s name.
However, investigations revealed that the acquisitions were allegedly funded through fraudulent investment schemes run by the firm, prompting the EFCC to seek legal action to recover and redistribute the funds.
Cititrust, in an attempt to retain ownership of the assets, filed a counter-motion and an affidavit opposing the EFCC’s request. But the court found no merit in their arguments and proceeded to grant the Commission’s application.
Justice Ogazi ruled that the forfeited assets should be used to compensate investors who were defrauded by the scheme. Any remaining value, the court ordered, is to be forfeited to the Federal Government.
The ruling adds to the growing list of court-sanctioned recoveries targeting fraudulent investment operations across Nigeria, as the EFCC intensifies efforts to clamp down on financial crimes that prey on public trust.
