A Federal High Court in, Lagos has ordered the final forfeiture of 2,041,087,747 units of shares in Livingtrust Mortgage Bank Plc (formerly Omoluabi Mortgage Bank Plc), valued at N6,674,356,932.69.
Also forfeited were the sums of N42,461,096.66 and $26.44, all traced to Cititrust Holdings Plc and its subsidiaries.
Justice F.N. Ogazi ordered the final forfeiture on Tuesday, following a motion filed by the Economic and Financial Crimes Commission through its counsel, Ahmad A. Usman.
EFCC had earlier secured an interim forfeiture order on the assets and published the notice in a national newspaper to allow interested parties to show cause why the assets should not be permanently forfeited.
In his submission, Usman told the court that Cititrust Holdings and several subsidiaries were being prosecuted by the EFCC for allegedly running a Ponzi scheme, and the forfeited assets were purchased using investors’ funds.
He explained that Cititrust initially acquired the shares from the Osun State Government through special purpose vehicles, before harmonising them under its name.
Cititrust, in a bid to retain the assets, filed a motion and affidavit to challenge the EFCC’s application. However, the court dismissed their arguments and upheld the Commission’s position.
Justice Ogazi granted the final forfeiture order and directed that the recovered assets be used to compensate the defrauded investors. Any remainder should be forfeited to the Federal Government, the court ruled.
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