A prosecution witness on Friday revealed before the Federal High Court in Enugu how Chinedu Okoronkwo, alleged Ponzi scheme operator, diverted more than N91.5 million from unsuspecting investors through a purported microfinance bank that was neither licensed by the Central Bank of Nigeria (CBN) nor insured by the Nigeria Deposit Insurance Corporation (NDIC).
Okoronkwo, alongside his company, Reliance Microfinance Cooperative Society Limited, is standing trial before Justice F. O. Giwa-Ogunbanjo on a 36-count charge bordering on forgery, obtaining money by false pretence, and operating banking activities without a valid licence.
The case is being prosecuted by the Enugu Zonal Directorate of the Economic and Financial Crimes Commission (EFCC).
According to a statement by Dele Oyewale, EFCC Spokesman, at Friday’s proceedings, the prosecution presented its ninth witness, Abubakar Abubakar, an operative of the EFCC, who detailed how the defendant used falsified credentials and church connections to lure victims.
According to Abubakar, a letter of enquiry sent to the Central Bank of Nigeria (CBN) revealed that Reliance Microfinance Cooperative Society Limited was not licensed to operate as a microfinance bank.
He further confirmed that the firm was also not insured by the Nigeria Deposit Insurance Corporation (NDIC), as shown in a letter dated October 25, 2024, admitted in evidence as Exhibit 44.
The EFCC witness explained that Okoronkwo began scouting for investors within his church community, convincing worshippers to put money into what later turned out to be a Ponzi scheme.
“An analysis of the company’s bank statements tendered as exhibits revealed that the firm received N69.85 million through its Guaranty Trust Bank account (No. 0209253844) and an additional N21.7 million through its United Bank for Africa account, all from unsuspecting victims”, the Commission said.
Abubakar stressed that Okoronkwo, who acted as both CEO and Managing Director of Reliance Microfinance Cooperative Society Limited, was also the sole signatory to the company’s accounts, giving him unfettered control over the funds.
“The charges against him include fraudulently obtaining N15 million from one Francis Okoye Maluze in 2018 under the false pretence that his firm was licensed by the CBN and insured by the NDIC.
“Another charge accused him of forging a certificate of registration in 2015 to pass off his company as legitimate.
“Investigations into Okoronkwo’s activities began in 2019, after a petition from Maluze, who claimed he invested N25 million in the company with the promise of a refund plus interest within 90 days, a promise that was never fulfilled”, the statement read.
The EFCC said that during investigations, more than 100 other victims came forward, alleging that they were defrauded of millions of naira through similar schemes.
Okoronkwo was arraigned on October 14, 2019, where he pleaded not guilty.
The case was adjourned to October 14 and 17, 2025 for continuation of trial.
