EFCC Arraigns ‘Crime Alert’ Boss For Alleged N35m Fraud

An image showing Olaniyan Gbenga Amos,  also known as ‘Crime Alert’. Source: EFCC
An image showing Olaniyan Gbenga Amos, also known as ‘Crime Alert’. Source: EFCC

 

The Ibadan Zonal Command of the Economic and Financial Crimes Commission, EFCC, on Monday, October 18, 2021, arraigned one Olaniyan Gbenga Amos who is also known as ‘Crime Alert’.

Mr Olaniyan was arraigned on a 35-count charge bordering on conspiracy, operating business of other financial institutions and obtaining money under false pretense to the tune of N35 million.

Also brought before Justice Uche Agomoh of the Federal High Court sitting in Ibadan, Oyo State, was his company, Detorrid Heritage Investment Limited.

The defendant was arrested following petitions by victims, alleging that Amos through his company, Detorrid Heritage Investment Nigeria Limited (DHIL) popularly known as Crime Alert Security Network Investment, induced them to invest in a network scheme which offered a monthly 30% returns on investment.

One of the counts state: “That you Olaniyan Gbenga Amos and Detorrid Heritage Investment Limited between August, 2019 and May, 2021 at Ibadan, within the jurisdiction of this Honourable Court, without license, operate business of other financial institutions and thereby committed an offence contrary to section 58(1) and punishable under section 59(6) (a and b) of the Banks and Other Financial Institutions Act, Cap B3 Laws of the Federation Nigeria, 2004.”

Count 20 reads: “That you Olaniyan Gbenga Amos and Detorrid Heritage Investment Limited on or about 29th of September, 2020, at Ibadan within the jurisdiction of this Honourable Court, with intent to defraud obtained the sum of N15, 000,000:00 (Fifteen Million Naira) only from Fadipe Babajide Ayorinde, when you falsely represented to him that the money is meant for registration and investment with Crime Alert Security Network with a promise of 30% return on investment in 6 weeks (30 working days), which representation you knew to be false and thereby committed an offence contrary to section 1 (I)(a) and punishable under section (3) of the Advance Fee Fraud and Other Fraud Related Offences Act 2016.”

They pleaded “not guilty” to the charges.

In view of their plea, the prosecution counsel, Galadanchi Sanusi, asked the court to remand the defendant at the Nigerian Correctional Service and fix a date for trial to commence.

Counsel for the first and second defendants, Richard. A. Ogunwole SAN informed the court he has filed an application for the release of his client on bail. But the court ruled that the application was not ripe for hearing as the further affidavit filed by the defendant is not properly before the Court.

Consequently, Justice Agomoh adjourned till October 25, 2021 “for hearing of bail application” and also ordered that the defendant be remanded at the Nigerian Correctional Centre, Abolongo, Oyo State.

Man Docked For Allegedly Defrauding 170 People Of ₦10.7bn

Nigerian Police have arraigned a young man, Joshua Adeyinka Kayode for allegedly defrauding over 100 people to the tune of N10.7 billion.

 

The Nigerian police have arraigned a young man, Joshua Adeyinka Kayode, (22), before a Federal High Court sitting in Lagos, for allegedly using a fake investment scheme to defraud 170 people to the tune of N10.7 billion.

He was arraigned on Thursday before Justice Tijjani Ringim on 170 counts of conspiracy and obtaining money by false pretence alongside his company, Quintessential Investment Company Limited, by the men of Force Criminal Investigation Department (ForceCID) Annex, Alagbon-Ikoyi, Lagos.

Counsel for the prosecution, Williams Tijjani, told the court that the defendant and others now at large, committed the offences between July 2020 and March 2021.

He also told the court that the defendant defrauded the victims under the pretence of false multiple returns on investment.

According to the prosecutor, the offences committed by the defendant are contrary to and punishable under sections 8(a) and 1(1) (a) (c) of the Advance Fee Fraud and other Fraud Related Offences Act 2006.

The defendant, however, denied the allegations and pleaded not guilty to all the counts.

Upon a not-guilty plea, the prosecutor, asked the court to remand him in the custody of the Nigerian Correctional Services (NCoS), pending when his bail application would be heard and determined.

Counsel to the defendant, Snr Advocate of Nigeria, Mr Emeka Okpoku, did not oppose the prosecutor’s remand application, but instead asked the court for a short date to enable him file the bail application.

After listening to the submission of parties, Justice Tijjani Ringim, adjourned the matter till August 11, for the hearing of the defendant’s bail application.

Justice Ringim also ordered that the defendant be remanded in the custody of the NCOS, till the hearing and determination of his bail application.

Bernard Madoff, Architect Of Largest Ponzi Scheme In History, Dead In US Prison

Bernie Madoff

 

 

Bernie Madoff, mastermind of the largest financial scam in history that unraveled during the 2008 economic crisis, died in jail on Wednesday, US prison officials said. He was 82.

Madoff had been suffering from chronic kidney failure and prison chiefs had denied his request last year to be allowed to go home to die.

The New Yorker was sentenced to 150 years in prison in 2009 for running a pyramid-style scheme that conned tens of thousands of people around the world and was estimated to be worth almost $65 billion.

It became an ugly symbol of Wall Street excess and left a crippling human toll, with investors going from rich to broke overnight.

“We can confirm Bernard Madoff passed away on April 14, 2021, at the Federal Medical Center (FMC) Butner, North Carolina,” an official with the federal Bureau of Prisons told AFP in an email.

The statement said the cause of death needed to be determined by a medical examiner.

In February 2020, Madoff’s lawyer said the disgraced Wall Street financier was terminally ill with “kidney disease, among other serious medical conditions.”

“The Bureau of Prisons concluded in September 2019 that Madoff has less than 18 months to live because of the terminal nature of his kidney failure,” attorney Brandon Sample wrote.

He asked for compassionate release so he could mend fences with his grandchildren and die a free man but the request was rejected by the prisons bureau.

The Washington Post reported then that Madoff needed a wheelchair and 24-hour care.

“I’ve served 11 years already, and, quite frankly, I’ve suffered through it,” Madoff told the paper in an interview.

“You know, there hasn’t been a day in prison that I haven’t felt the guilt for the pain I caused on the victims and for my family,” he said.

In a city famous for money and theater, the silver-haired Wall Street doyen was a master of both, using his charm to wheedle billions from his clients who little suspected he was a con artist.

Madoff was born on April 29, 1938 to Jewish parents, in humble beginnings in Queens, New York.

He started as a Long Island lifeguard before entering the stock market, eventually becoming chairman of the Nasdaq stock exchange.

There, he was credited with helping revolutionize the shift in trading from face-to-face deals, from telephones to computers, with trades made in seconds not minutes, and ushering in an era of ever greater stakes and profits.

But it was as a private money manager that he won a reputation as a financial guru.

– Life of luxury –
Returns of around 10 percent, with occasional surges a great deal higher, came in so regularly that rich individuals, endowments, and supposedly expert banks lined up to give him money between the 1970s and 2000s.

But in reality he was running a shell pyramid, or Ponzi, scheme — where new clients’ capital was stolen to pay off existing clients and create the illusion of returns, until it collapsed.

All the while he was living a life of luxury, owning several palatial homes, a Manhattan apartment, yachts and a private plane.

Madoff’s fraud was revealed during the financial crisis in 2008 when he was unable to satisfy growing client demands to withdraw their investments, and many lost their savings or were unable to retire.

Even his Manhattan offices were phony, with unqualified workers churning out fake statements and other paperwork, prosecutors said.

Faced with financial ruin, Madoff confessed the fraud to his two sons in December 2008. They turned him into law enforcement and he was arrested the next day. In 2009, he pleaded guilty to 11 charges, including fraud, theft and perjury.

Those who lost money in the scam included actor Kevin Bacon and the then owner of the New York Mets.

US authorities have seized about $4 billion and through the Madoff Victim Fund will disburse payments to more than 30,000 people around the world who were cheated out of their investments.

Madoff’s eldest son Mark killed himself on the second anniversary of the arrest. In 2014, his younger son Andrew died from cancer, blaming the fallout from the scandal for the disease’s return.

Court Orders Detention Of Dalori For Allegedly Diverting $2.8m, N6.5bn, Investors’ Funds

Man Bags 15 Years In Prison For N5.2m Fraud

 

The Federal High Court in Nyanya, Abuja has ordered the detention of the Managing Director/Chief Executive Officer of Galaxy Transportation and Construction Services Limited, Babagana Abba Dalori, in the custody of the Economic and Financial Crimes Commission (EFCC).

Justice Muawiyah Idris gave the order while ruling on a bail application brought before the court by his (Dalori’s) counsel, Joe-Kyari Gadzama (SAN), following his arraignment by the EFCC for criminal charges.

According to a statement by the Commission, Dalori is being detained for allegedly diverting $2.8million and N6.5billion of investors’ funds.

The EFCC had on September 2, 2019, arraigned him and his company, before Justice Idris on three separate charges – two counts bordering on a N95,530,000 fraud; two counts bordering on obtaining N4million by false pretence; and eight counts bordering N30,908,000 fraud.

Dalori is also being prosecuted by the EFCC before Justice Venchak Gaba of the FCT High Court, Kwali, for an alleged N10million fraud.

Following his arraignment before Justice Idris, Gadazama had moved the application for his bail arguing that the case against him was civil.

He also urged the court to release him on health grounds. The bail application was, however, vehemently opposed by counsel for the EFCC, Maryam Ahmed, who urged the court to deny the application for bail in the interest of justice.

In arguing against the application, the EFCC had also attached 145 petitions in the counter-affidavit, stressing that the EFCC needed more time to investigate the allegations.

Citing Section 162 of the Administration of Criminal Justice Act 2015, Justice Idris dismissed the bail application and held that the charges against Dalori, were criminal in nature and which he must answer for, noting that the charges bordered on criminal diversion, and obtaining money under false pretence, and criminal breach of trust.

The trial judge also dismissed the argument for bail based on health grounds, noting that there were no medical documents attached in the application.

According to the court, the EFCC was able to prove beyond reasonable doubts that Dalori used investors’ money to trade in Forex, as indicated in the confessional statement by a representative of Forextime Limited (the Forex company he used for the transaction), which was attached in the EFCC’s counter-affidavit.

Consequently, Justice Idris ordered that he should be detained in the custody of the EFCC for the next two months, allowing time for the anti-graft agency to carry out more investigations into shady dealings linked to him, even as more petitions against him continue to pour in.

Specifically, Dalori is alleged to be running a Ponzi scheme, which he has allegedly used to defraud unsuspecting investors to the tune of N6.5billion. So far, the EFCC has received a total of 146 petitions, with 128 petitions already established against him involving the N6.5billion fraud.

“Investigations into his shady dealings also revealed that he traded with investors’ fund to the tune of $2.8million in Forex at a loss, and also gave a N500million tip in order to secure a contract, which, however, flopped.

“Further investigations into the petitions, also exposed his fraudulent activities, which involved diverting investors funds to personal use, to acquire properties, including four filling stations, one hospital, supermarket, watermelon farm, fish and poultry farm, a sachet water factory, houses and estates, and three quarries in Kano, Ogun and Abuja.

“Findings by the EFCC also showed that Dalori’s claim of investing funds in transportation through Galaxy Transportation was false as investigators could not trace any existing bus used for transport by his Transportation company,” the statement read.

Ponzi Scheme: SEC Warns Nigerians Against ‘Loom Money’

 

The Securities and Exchange Commission has warned Nigerians over an online investment scheme, called ‘Loom Money Nigeria’.

The acting director-general of SEC, Ms Mary Uduk issued the warning in Abuja, on Thursday during a press briefing.

She said Loom Money Nigeria is a pyramid scheme which operates on social media and lures Nigerians to invest as low as N1,000 naira and N13,000 and get as much as eight times the value of the investment in 48 hours.

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Ms Uduk added that the venture has no tangible business model, as returns would be paid from other people’s invested funds.

“We are aware of the activities of an online investment scheme tagged ‘Loom Money Nigeria’. The platform has embarked on an aggressive online media campaign on Facebook and WhatsApp to lure the investing public to participate by joining various Loom WhatsApp groups.

“Unlike MMM that had a website and the promoter known, the people promoting Loom are not yet known and this pyramid scheme operates through closed groups mainly on Facebook and WhatsApp. If it were a local Ponzi scheme with known offices, it would be very easy for the commission to seal their offices and freeze their accounts.

“We, therefore, wish to notify the investing public that the operation of this investment scheme has no tangible business model; hence, it’s a Ponzi scheme where returns are paid from other people’s invested sum. Also, its operation is not registered by the commission,” she warned.

Ponzi Scheme: Widow Loses 2.9m Naira In Benue

Ponzi Scheme: Benue Scammer Defraud Widow Of 2.9m NairaUsually, the practice is to give help to the widows but one Mrs Dauda Maiduguri seems to have a pathetic story to tell.

She says she has been defrauded 2.9 million Naira by one Philemon Ibrahim of Global Funds International who is being interrogated by the Police.

The Benue State Commissioner of Police, Mr Bashir Makama, is warning against such practices, advising Nigerians not to involve themselves in such ”get rich quick” means of getting money.

MMM Nigeria: Reps To Probe Ponzi Scheme Operations

Reps To Probe Ponzi Scheme 'MMM' OperationsThe House of Representatives has mandated its committee on banking and currency and financial crimes to investigate the operations of the internet based wonder bank, known as “MMM Nigeria scheme”.

This resolution was adopted by the House after debating a motion sponsored by Representative Saheed Akinade-Fijabi on the need to check the scheme which he says is capitalizing on the high level of poverty in the land.

The lawmakers also observed that every Nigerian participating in the MMM scheme which has no legal backing is vulnerable to losing their investment as there is no identifiable platform to guarantee the security of the invested funds.

The senators recalled that many Nigerians had been victims of similar schemes in the past, all in the name of making quick money.

The joint committee has four weeks to report back to the House.