Ponzi Scheme: 34 year old teacher risks being jailed for 15 years

A 34-year-old teacher, Sunday Olasogba, who appeared before an Ikeja Magistrate's’ Court today (Friday) for allegedly defrauding 20 persons of N4m, said he had intended to invest the money in a business.

The accused was arraigned before Magistrate A.O. Gbajumo, on charges of obtaining money under false pretences and stealing.

Olasogba, a resident of Ipaja area of Lagos, however, denied the charges and was admitted to a bail of N500,000 with four sureties in like sum.

According to the prosecutor, Sgt. Michael Unah, the accused committed the offences between December 2016 and April 2017 at Ipaja, Lagos.

Unah said the accused obtained N4m from 20 people on the pretext of investing it in a scheme called Double Wealth Maker.

He said the accused collected the money from the complainants after assuring them that the scheme had been registered under Corporate Affairs Commission, knowing full well that the claim was false.

“He told them that the scheme had been registered with the government and that anybody who invests in the business will get 70 per cent of the capital invested and will be paid after 30 days.

“It is four months now and none of the complainants have received any money.

“The complainants later discovered that the scheme was a fraud and was not registered with the government as claimed by the accused,” Unah said.

The offences contravened sections 287 and 314 of the Criminal Law of Lagos State, 2015.

The accused may be jailed 15 years if found guilty of the offence of obtaining money under false pretences, according to Section 314.

The case was adjourned till June 14 for mention.