Ponzi Scheme: Cooperative CEO Jailed for N2 Billion Fraud in Nigeria

The Federal High Court in Calabar, Cross River State, has sentenced Uno Michael Eke, Chief Executive Officer of Micheno Multi-Purpose Cooperative Society, to one year imprisonment for his involvement in a N2 billion fraud case. The conviction follows charges brought against him by the Economic and Financial Crimes Commission (EFCC) for conspiracy, obtaining property by false pretence, and money laundering.

Eke pleaded guilty to four amended counts before Justice Rosemary Dugbo Oghoghorie, leading to his conviction. According to a statement issued by EFCC’s Head of Media and Publicity, Dele Oyewale, investigations revealed that Eke lured unsuspecting victims into investing large sums of money with promises of an 80% return on investment within 40 days. He subsequently funneled the funds into personal accounts and used them to acquire multiple properties in Calabar.

As part of his sentence, the court ordered Eke to forfeit numerous assets, including 12 flats, two plots of land, and 18 self-contained flats, all located in Calabar. Additionally, he was required to surrender N10 million recovered during the investigation.

Court documents detailed how Eke, along with his associate Aya Kanu Aya, who remains at large, orchestrated the fraudulent scheme between June and August 2018. The charges outlined specific instances of deception, including a case where Eke obtained N2 million from a victim, Kubnse Ogar Ebute, under false pretenses, promising significant returns through the Swiss Golden investment packages offered by his cooperative society.

The EFCC emphasized that Eke’s conviction underscores the commission’s commitment to safeguarding Nigerians from fraudulent schemes and ensuring accountability for financial crimes. The agency reaffirmed its dedication to prosecuting fraudsters and recovering stolen assets for affected victims.