Ponzi Scheme: EFCC Bursts Galaxy CEO Dalori’s N7bn Scam

BY EDMOND ODOK, ABUJA – Hopes of funds recovery may have risen for about 27,400 Nigerians that lost their investments in the N7 billion Ponzi scheme promoted by the embattled Chief Executive Officer (CEO) of Galaxy Transportation and Construction Services Limited, Mr Babagana Dalori

This follows moves by the Economic and Financial Crimes Commission (EFCC) that have opened up cans of worms on how Mr Dalori built the dubious scheme to  allegedly defraud innocent Nigerians over a seven year period.

The anti-graft agency said Dalori, now cooling his feet in its custody, had lured unsuspecting Nigerians to invest in his companies with promises of mouth-watering returns on their investments.

EFCC’s acting spokesperson, Mr Tony Orilade, said the bubble has now burst on Dalori whose Ponzi scheme effectively commenced in 2012 with the incorporation a firm that floated the tricycle (Keke NAPEP) as its asset.

Orilade explained that Dalori’s asset base later grew and expanded to 50 tricycles as the company relentlessly pooled together investments from unsuspecting members of the public through several publicity stunts.

According to the anti-graft agency; “The entrepreneur later diversified into other business ventures while promising mouth-watering returns to investors.

“The commission’s investigators discovered that Dalori initially paid 200 per cent interest on investors’ deposits in the firm and later reduced the interest to 135 per cent before the scheme crashed in 2018.

“To get as many unsuspecting victims into his Ponzi net, Dalori engaged in massive advertisements on radio and television, including a production of a movie by A-list Nollywood actors.”

The Commission further stated that; “Unfortunately, his gimmicks paid off as different people took their hard-earned savings, inheritance, pensions and other sources of income and invested in Galaxy.

“Now, the scheme has crashed and investors can no longer get their money. At the moment, he has used the investors’ money to incorporate different entities without getting their consent.

“He now has Galaxy Global Energy Concept Ltd, Galaxy Miners Concept Ltd, Galaxy Global Farms, Galaxy Computers, Galaxy Block Making Factory, Galaxy Hospital and Galaxy Hotel.”

Orilade disclosed that in order to prevent further dissipation of investors’ funds, pending the conclusion of investigation, the EFCC has, in the interim, frozen all bank accounts belonging to Galaxy

The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC), as regulators and supervisors in the nation’s banking sector, have consistently warned the public against the Ponzi scheme, variously described as “a fraudulent investing scam promising high rates of return with little risk to investors.”

The “scheme generates returns for older investors by acquiring new investors.”