EFCC secures final forfeiture of hotel, school, factory linked to alleged Ponzi scheme

From Sola Ojo, Abuja

A Federal High Court sitting in Lafia, Nasarawa State, has ordered the final forfeiture of multiple high-value properties and cash traced to an alleged Ponzi scheme operator, marking another significant milestone in Nigeria’s ongoing crackdown on financial crimes.

The order, granted by Justice M.O. Olajuwon, followed an application by the Economic and Financial Crimes Commission (EFCC), which successfully argued that the assets were proceeds of unlawful activities linked to one Theophilus Oloche Ebonyi.

Among the forfeited assets are a 23-room hotel and event centre known as De Thinkers Home and Apartments, a warehouse, a sachet water factory, two office buildings and a private primary school.

Also forfeited is over N1 million found in a First Bank account associated with the suspect.

Court filings revealed that the properties were allegedly acquired using funds generated from a fraudulent investment scheme.

According to EFCC spokesman Dele Oyewale, the suspect operated through accounts linked to Theobarth Global Foundation, which investigators identified as a major conduit for collecting and laundering victims’ funds.

An affidavit presented by EFCC investigator Mary Ebute detailed how a Keystone Bank account linked to the foundation served as the primary channel through which investors’ money was received and subsequently diverted into real estate and business ventures.

The commission’s legal team argued that the pattern of transactions, combined with the scale of acquisitions, pointed to a deliberate effort to conceal illicit proceeds.

In his ruling, Justice Olajuwon held that the EFCC had provided sufficient evidence to establish that the assets were reasonably suspected to be proceeds of unlawful activity.

Relying on provisions of the Advance Fee Fraud and Other Fraud Related Offences Act, the court noted that once such suspicion is established, the burden shifts to the respondents to prove the legitimacy of the assets.

The judge ruled that the respondents failed to discharge this burden, thereby paving the way for the permanent forfeiture of the properties and funds to the Federal Government.

In recent years, the commission has increasingly turned to civil forfeiture proceedings to recover illicit wealth, even in cases where criminal trials are ongoing or yet to be concluded.

This approach allows authorities to prevent the dissipation of suspected proceeds of crime while investigations continue.

The case also highlighted the persistent threat posed by fraudulent investment platforms, which often promise unrealistic returns to lure victims.

Such schemes frequently channel proceeds into visible assets such as hotels, schools and factories to create an illusion of legitimacy.

For many victims, recovery remains uncertain, as forfeited assets are typically absorbed into government control, though advocacy continues for mechanisms that prioritise restitution.

Oyewale described the judgment as a testament to the commission’s commitment to ensuring that crime does not pay.