The trial of an alleged Ponzi scheme operator, Chinedu Roland Okoronkwo, took a new turn on Friday, September 26, 2025, at the Federal High Court sitting in Enugu, as a prosecution witness revealed how unsuspecting investors were defrauded of more than ₦91.5 million through an unlicensed microfinance bank. Okoronkwo, who is being prosecuted by the Enugu Zonal Directorate of the Economic and Financial Crimes Commission, EFCC, is standing trial alongside his company, Reliance Microfinance Cooperative Society Limited, on a 36-count charge of forgery, obtaining money under false pretence, and operating an illegal banking business.
Testifying before Justice F. O. Giwa-Ogunbanjo, EFCC operative Abubakar A. Abubakar disclosed that the Commission’s enquiry to the Central Bank of Nigeria confirmed that Reliance Microfinance Cooperative Society was never licensed to operate as a financial institution, nor was it insured by the Nigeria Deposit Insurance Corporation. According to the witness, bank statements presented in court showed that the company’s accounts with Guaranty Trust Bank and United Bank for Africa received ₦69.8 million and ₦21.7 million respectively from victims who were deceived into believing they were investing in a legitimate financial platform.
The court also heard that Okoronkwo allegedly began scouting for investors within his church, using religious trust as a tool to draw people into his scheme. As the sole signatory to the company’s accounts, he was said to have controlled the inflow of funds, presenting forged documents including a fake registration certificate to give his operations an appearance of legitimacy. The EFCC explained that the case began in 2019 after a petitioner reported losing ₦25 million to the suspect, and that further investigations revealed that more than 100 people had fallen victim to the scheme. The matter has been adjourned to October 14 and 17, 2025, for continuation of trial.
This development comes against the backdrop of Nigeria’s long struggle with financial scams. From the notorious MMM collapse that wiped out the savings of millions nearly a decade ago to more recent cooperative and online investment frauds, Ponzi schemes have thrived on the desperation of citizens seeking quick returns amid economic hardship. The Enugu case once again highlights how trust networks such as religious institutions can be exploited, leaving families devastated and deepening public mistrust in community-based savings and lending initiatives.
Observers say that unless stronger financial education and stricter regulatory frameworks are implemented, Nigerians remain vulnerable to fraudsters who prey on economic frustration. With inflation and unemployment still troubling households, many are likely to be tempted by similar promises of fast profits, creating opportunities for more scams to flourish. The outcome of Okoronkwo’s trial may therefore set a precedent on how seriously the system deals with financial predators who exploit trust for personal gain.
📩 Reported by: Stone Reporters News
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