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.