An Ikeja Special Offences Court on Wednesday sentenced a 27-year-old 300 level undergraduate of Federal University of Agriculture, Abeokuta, David Ugboko to 14 years imprisonment for operating a N27.5 million ponzi scheme.
Delivering judgment, Justice Rahman Oshodi found Ugboko guilty of a 10-count charge bordering on conspiracy, obtaining money by false pretence and retention of proceeds of crime.
The judge, however, discharged him on the 11th count.
Oshodi held that the convict gave no account of any genuine forest trading and he intended to permanently deprive the complainants of their money
“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 victim’s money has been returned.
“You have shown no remorse for these offences,” Oshodi said.
The court subsequently sentenced Ugboko to a total of 14 years imprisonment on counts one to 10 and ordered that the sentences should run concurrently.
The judge, however, held that the sentence would be reduced to seven years if the convict restituted the sum of N27.5million to the victims within 90 days.
The Economic and Financial Crimes Commission (EFCC) Counsel, Mr Ahmed Usman told the court that investigations revealed that Ugboko defrauded more than 500 investors of over N1 billion through the ponzi scheme.
He said the scheme involved using funds from new depositors to pay earlier investors.
The prosecution said that rather than investing the money as claimed, the convict diverted the money for personal use, purchasing a 2006 Mercedes-Benz and commencing construction of a four-bedroom duplex in Ibadan.
The anti-graft agency said that Ugboko committed the fraud when he was between the ages of 20 and 22 while he was a 300-level undergraduate in 2021.
The commission told the court that the convict was said to have assured investors on Instagram that their funds would be refunded when investment proceeds improved, while he was acquiring properties with their money.
During the trial, the prosecution called three witnesses to establish its case against Ugboko while the defence called one witness.
The EFCC said the offences contravened Sections 280 and 287 of the Criminal Code Law of Lagos State, 2015.
