In a significant legal development, the Federal High Court sitting in Ikoyi, Lagos, has ordered the final forfeiture of assets traced to Cititrust Holdings Plc and its subsidiaries, including over 2 billion shares in Livingtrust Mortgage Bank Plc and substantial monetary sums. The ruling was delivered by Justice F. N. Ogazi on Tuesday, marking a decisive turn in the Economic and Financial Crimes Commission’s (EFCC) investigation into the company’s financial dealings.

The judgment comes after a motion on notice was filed by the Lagos Zonal Directorate 2 of the EFCC, located in Okotie Eboh, Ikoyi. Represented by counsel Ahmad A. Usman, the EFCC asserted that the forfeited assets were the proceeds of a fraudulent investment scheme.

Details of the Forfeited Assets

According to the court order, the forfeited assets include:

  • 2,041,087,747 units of shares in Livingtrust Mortgage Bank Plc (formerly Omoluabi Mortgage Bank Plc), valued at N6,674,356,932.69
  • N42,461,096.66
  • $26.44 in cash

The EFCC claimed that these shares were initially acquired by Cititrust through a series of Special Purpose Vehicles (SPVs), using funds sourced from unsuspecting investors. The shares were reportedly purchased from the Osun State Government and later consolidated under Cititrust Holdings’ name.

Allegations of a Ponzi Scheme

In court, the EFCC maintained that Cititrust Holdings Plc and its subsidiaries are under prosecution for operating a Ponzi-style scheme, raising funds from the public under false pretenses. Despite contesting the motion through a counter-motion and affidavit, Cititrust's efforts to reclaim the assets were overruled.

Justice Ogazi held that the EFCC’s application for final forfeiture was well-founded, and the evidence provided demonstrated a strong case of fraud. He reaffirmed the interim forfeiture order earlier granted and noted that Cititrust failed to present compelling reasons for the assets to be returned.

Restitution to Victims

As part of the ruling, Justice Ogazi ordered the restitution of the forfeited assets to the victims of the alleged scheme. Any residual funds, after compensating the affected investors, will be forfeited to the Federal Government of Nigeria.

A Warning to Financial Institutions

The case serves as a stark reminder of the regulatory crackdown on financial misconduct and fraudulent investment schemes. The EFCC’s success in securing the final forfeiture underscores its commitment to protecting investors and ensuring that perpetrators of economic crimes are held accountable.

With this ruling, the court has signaled a zero-tolerance stance on corporate financial crimes and has set a precedent for restitution and justice for victims of complex financial frauds.