Hearing in CitiTrust Ponzi case adjourned to June 29

The Court of Appeal, Lagos Division, has adjourned proceedings in the CitiTrust Ponzi scheme case to June 29, 2026, after granting the appellant’s application to regularise its filings.

In a ruling delivered on April 20, 2026, a three-member panel comprising Justice Boloukuromo Ugo, Justice Danlami Senchi, and Justice Paul Bassi granted a motion seeking leave to file processes out of time.

“The motion is granted, and the appellant’s brief is deemed as properly filed,” the court held.

Following the ruling, the court adjourned the matter to June 29, 2026, for the hearing of the appeal.

The appeal, filed by CitiTrust Financial Services Limited, is challenging a ruling of the Federal High Court in Lagos.

When the matter was called on Monday, appellants’ counsel, Oyetola Atoyebi (SAN), informed the court of a pending application seeking leave to file processes out of time.

CitiTrust, the parent company of Osun State–partially owned LivingTrust Mortgage Bank, had earlier been prosecuted by the Economic and Financial Crimes Commission over allegations of money laundering and illegal financial operations.

The prosecution led to the forfeiture of the company’s assets to the Federal Government, alongside accusations that it operated a Ponzi scheme.

The anti-graft agency also declared some of the company’s executive directors wanted, alleging they had gone into hiding.

Subsidiaries affected by the Federal High Court judgment include CitiTrust Asset Management Limited and CitiTrust Holding Plc.

 In the appeal, Atoyebi explained the delay, telling the court: “The record of appeal of this appeal was transmitted to this court on the 26th day of May 2025.

“The appellants have 45 days from the date of transmission to file their brief of argument.”

According to Atoyebi, the counsel to the appellants could not file the brief within time due to time constraints amidst other pending work.

“By the time counsel finished settling the Appellants’ brief, time had already elapsed,” he further stated, noting that the brief exceeded the prescribed page limit.

“The Appellants’ brief of argument is in excess of 35 pages provided for by the Rules of this court by 3 pages, hence there is a need to seek leave of the court,” he added.

In the ruling, Justice Friday Ogazi held that there was sufficient evidence of wrongdoing.

“There are legions of evidence of unlawful practices all through the report and other exhibits before this court.

“Exhibit EFCC 7 indicates that the 3rd Respondent is not registered with the SEC and CBN. In my view, these are involvement in unlawful activities despite being a registered corporate body,” the judge said.

He further held: “It is obvious that this conduct constitutes financial crimes and there is reasonable suspicion of unlawful conduct.”

On the legal threshold for forfeiture, he stated, “In the final forfeiture of this nature, which is not conviction-based, the applicant succeeds by proving his case on the balance of probability that there is reasonable suspicion of unlawful activity.

“I hold that there is merit in the applicant’s case as there is proof of reasonable suspicion on balance of probability that the properties sought to be forfeited are proceeds of unlawful activity.”

Justice Ogazi also emphasised the need to pierce the corporate veil in cases of fraud, stating, “When issues of fraud arise, the corporate veil must be lifted as statutory provisions and legal principles cannot be used as a refuge to justify illegality.”

He subsequently ordered the final forfeiture of all the shares of Livingtrust Mortgage Bank Plc held by the 3rd respondent.

“The remnant after the payment to investors/victims shall be forfeited and paid to the designated account of the Federal Government,” the judge added.

 Meanwhile, the criminal charges against the company and its directors will proceed alongside the appeal.