A Lagos State Special Offences Court in Ikeja has sentenced a 27-year-old student of the Federal University of Agriculture, Abeokuta (FUNAAB), David Ugboko, to 14 years’ imprisonment for defrauding investors through a Ponzi scheme.
Justice Rahman Oshodi delivered the judgment on Wednesday after finding Ugboko guilty on 10 counts bordering on conspiracy, obtaining money by false pretence and retention of proceeds of crime.
The Economic and Financial Crimes Commission (EFCC) told the court that Ugboko defrauded more than 500 investors of over ₦1 billion through the scheme, allegedly using funds from new investors to pay earlier participants.
The commission said the convict diverted investors’ money for personal use, including the purchase of a 2006 Mercedes-Benz and the commencement of a four-bedroom duplex in Ibadan. It said the scheme was operated when Ugboko was between 20 and 22 years old and studying at FUNAAB.
The EFCC also alleged that Ugboko and his company, Titan Management Limited, fraudulently converted ₦18 million belonging to Olukayode Adeola Adebo and ₦1.9 million belonging to Oluseyi Damisola in 2021.
Ugboko was arraigned in September 2023 and pleaded not guilty. During the trial, the prosecution called three witnesses, while the defence presented one.
In his judgment, Justice Oshodi held that the prosecution had proved counts one to 10 beyond reasonable doubt, but discharged the defendant on count 11.
The judge faulted Ugboko for failing to provide a credible explanation for the investment transactions and for not refunding the victims’ money for more than five years. He also said the convict had shown no remorse.
The court sentenced Ugboko to a total of 14 years’ imprisonment on counts one to 10, with the terms to run concurrently.
However, Justice Oshodi ruled that the sentence would be reduced to seven years if Ugboko refunded ₦27.5 million to the victims within 90 days.
The EFCC had urged the court to order restitution of the sum to the affected investors.
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