Lagos court jails FUNAAB student 14 years over N27.5m Ponzi fraud
- Justice Rahman Oshodi of the Ikeja Special Offences Court sentenced David Ugboko, 27, to 14 years for a Ponzi scheme.
- The EFCC said he defrauded more than 500 investors of over N1bn while studying at FUNAAB.
- The judge said the sentence drops to seven years if he repays N27.5m within 90 days.
A Lagos court has sentenced a 27-year-old student of the Federal University of Agriculture, Abeokuta (FUNAAB), David Ugboko, to 14 years in prison over a Ponzi scheme that the anti-graft agency said took more than N1bn from over 500 investors.
Justice Rahman Oshodi of the Ikeja Special Offences Court gave the verdict on Wednesday. He found Ugboko guilty on 10 of 11 counts, including conspiracy, obtaining money by false pretence and keeping proceeds of crime. The judge discharged him on the 11th count.
The Economic and Financial Crimes Commission (EFCC) told the court that Ugboko ran the scheme between the ages of 20 and 22 while at FUNAAB. It said he used money from new investors to pay earlier ones, rather than investing as promised.
According to the EFCC, he spent some of the funds on a 2006 Mercedes-Benz and started building a four-bedroom duplex in Ibadan. The commission also said he and his firm, Titan Management Limited, converted N18m belonging to Olukayode Adeola Adebo and N1.9m belonging to Oluseyi Damisola in 2021. The commission said that in 2020 he assured investors on Instagram that their money would be refunded once investment returns improved.
Why it matters
Ponzi schemes have cost many Nigerians their savings, especially young people drawn in by promises of quick returns on social media. This case shows that those who run them can face prison, though recovering the money is often harder.
Ugboko was arraigned in September 2023 and pleaded not guilty, leading to a full trial. The prosecution called three witnesses and the defence called one.
In his ruling, Justice Oshodi said the convict gave no credible account of the transactions and meant to permanently deprive the complainants of their money. He noted that Ugboko teaches more than 60 inmates while in custody, but said no victim had been repaid in over five years.
"You have shown no remorse for these offences," the judge said.
The EFCC had asked the court to order him to repay N27.5m to the victims. The judge sentenced him to 14 years on the 10 counts, to run at the same time, but said the term would fall to seven years if he repays the N27.5m within 90 days.
What happens next
Ugboko will serve the full 14 years unless he pays back the N27.5m within three months. The court's order covers that sum only, not the larger amount the EFCC said was taken from investors.
