27-YEAR-OLD UNDERGRADUATE BAGS 14 YEARS OVER N27.5M PONZI SCHEME

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By Aishat Momoh. O.

An Ikeja Special Offences Court has sentenced a 27-year-old undergraduate of the Federal University of Agriculture, Abeokuta, David Pascal Ugboko, to 14 years’ imprisonment for defrauding investors through a Ponzi scheme.

Justice Rahman Oshodi delivered the judgment after finding Ugboko guilty of 10 counts bordering on conspiracy, obtaining money by false pretence and retention of proceeds of crime.

The Economic and Financial Crimes Commission told the court that investigations revealed that Ugboko defrauded more than 500 investors of over N1bn through the scheme, using funds received from new depositors to pay earlier investors.

The commission alleged that instead of investing the money as promised, Ugboko diverted the funds for personal use, including purchasing a 2006 Mercedes-Benz and commencing the construction of a four-bedroom duplex in Ibadan, Oyo State.

Ugboko was said to have perpetrated the fraud between the ages of 20 and 22 while he was a 300-level student at FUNAAB.

The EFCC also told the court that in 2020, the defendant assured investors on Instagram that their funds would be refunded when investment proceeds improved, while allegedly acquiring properties with their money.

One of the charges alleged that Ugboko and Titan Management Limited, sometime in 2021, fraudulently converted N18m belonging to Olukayode Adeola Adebo to their personal use.

Another count accused them of fraudulently converting N1.9m belonging to Oluseyi Damisola.

The offences were said to be contrary to Sections 280 and 287 of the Criminal Law of Lagos State, 2015.

Ugboko was arraigned by the EFCC in September 2023 and pleaded not guilty to the charges, leading to a full trial.

During the proceedings, prosecution counsel, A.A. Usman, called three witnesses to establish the case against him, while the defence called one witness.

In his judgment, Justice Oshodi held that the prosecution had proved counts one to 10 beyond reasonable doubt, while discharging the defendant on count 11.

The judge said the defendant had failed to provide a credible explanation for the transactions, adding that he intended to permanently deprive the complainants of their money.

The judge also considered Ugboko’s claim that he had been teaching more than 60 inmates while in custody but noted that none of the victims had received a refund for over five years.

“I have considered the remarks you made, especially that you are teaching over 60 inmates while in custody, but for more than five years, none of the victims’ money were returned,” the judge said.

He added that the defendant had shown no remorse for the offences.

The EFCC prosecution counsel urged the court to order the convict to restitute N27.5m to the complainants.

The court subsequently sentenced Ugboko to a total of 14 years’ imprisonment on counts one to 10, with the sentences to run concurrently.

However, Justice Oshodi ruled that the sentence would be reduced to seven years if the convict restituted N27.5m to the victims within 90 days.