Justice Rahman Oshodi of the Ikeja Special Offences Court has sentenced a 27-year-old undergraduate of the Federal University of Agriculture, Abeokuta, David Ugboko, to 14 years’ imprisonment for defrauding investors through a Ponzi scheme of N27.5m.
The judge handed down the sentence on Wednesday 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, during the trial, told the court that investigations revealed that Ugboko defrauded more than 500 investors of over N1bn through the scheme, using funds from new investors to pay earlier depositors.
Rather than investing the money as promised, the EFCC alleged that he diverted the funds for personal use, including purchasing a 2006 Mercedes-Benz and commencing the construction of a four-bedroom duplex in Ibadan.
The commission said Ugboko perpetrated the fraud between the ages of 20 and 22 while studying at FUNAAB.
It added that in 2020, the convict assured investors through Instagram that their money would be refunded when investment proceeds improved, even as he allegedly acquired properties with the funds.
The commission told the court that Ugboko and Titan Management Limited fraudulently converted N18m belonging to Olukayode Adeola Adebo in 2021.
The convict and his company, Titan Management Limited, were also accused of fraudulently converting N1.9m belonging to Oluseyi Damisola in the same year.
According to the EFCC, the offences committed contravened Sections 280 and 287 of the Criminal Law of Lagos State, 2015.
Ugboko was arraigned by the EFCC’s Directorate 2 in September 2023 and pleaded not guilty, leading to a full trial.
During the proceedings, prosecution counsel, A.A. Usman, called three witnesses, while the defence called one witness.
While delivering judgment on Wednesday, Oshodi held that the prosecution had proved counts one to 10 beyond reasonable doubt and discharged the convict on count 11.
The judge said the convict had failed to provide a credible account of the investment transactions, adding that 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 victims’ money has been returned,” the judge said.
“You have shown no remorse for these offences,” he added.
Earlier, Usman urged the court to order the convict to restitute N27.5m to the victims.
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.