The Federal High Court sitting in Ikoyi, Lagos, has ordered the final forfeiture of over two billion shares in Livingtrust Mortgage Bank Plc, valued at approximately N6.67 billion. The shares, along with funds totaling N42.46 million and $26.44, were linked to fraudulent activities involving Cititrust Holdings Plc, a company previously flagged for operating a Ponzi scheme that defrauded investors.
Justice F. N. Ogazi issued the ruling following a thorough investigation by the Economic and Financial Crimes Commission (EFCC). The court found that the shares and funds were acquired through suspicious transactions traced back to Cititrust Holdings Plc, which used complex financial arrangements, including Special Purpose Vehicles, to conceal the origin of the assets.
“The evidence presented clearly shows that these assets were purchased using investors’ funds obtained through fraudulent means,” Justice Ogazi stated, dismissing attempts by Cititrust Holdings to contest the forfeiture.
The EFCC had initially secured an interim forfeiture order and published the court’s decision to allow any interested parties to challenge the ruling. However, no credible opposition was found, leading to the final forfeiture order.
The court directed that the forfeited shares and funds be used to compensate the defrauded investors. Any remaining assets will be handed over to the Federal Government of Nigeria.
This ruling comes amid growing concerns over regulatory lapses in Nigeria’s financial sector, especially following the collapse of digital asset platforms like CBEX. Experts have called for stronger government oversight to protect investors from fraudulent schemes.
Livingtrust Mortgage Bank, formerly known as Omoluabi Mortgage Bank Plc, remains operational. Recent legal challenges affecting the bank’s governance have been resolved, allowing it to continue its business activities.
The Central Bank of Nigeria has also taken steps to ensure professional governance at the bank, recently rejecting a controversial board nominee from the Osun State Government due to concerns over political interference.
