24 April 2019

Nigeria: EFCC Arrests Galaxy Transport Owner Over Alleged N7bn Ponzi Scheme

The Economic and Financial Crimes Commission (EFCC) has arrested the Chief Executive Officer of Galaxy Transportation and Construction Services Limited, Babagana Dalori.

Mr Dalori was arrested for allegedly defrauding no fewer than 27,400 Nigerians to the tune of about N7 billion through fake promises of mouth-watering returns on their investment in his companies.

The commission's Acting Publicity Secretary, Tony Orilade, made this known in a statement in Abuja on Tuesday.

According to the statement, Mr Dalori, who is currently undergoing interrogation at the commission, had incorporated the firm in 2012 with one tricycle (Keke NAPEP). Through pool investments by members of the public, the firm later boasted of 50 tricycles.

"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.

"Unfortunately, his gimmicks paid off as different people took their hard-earned savings, inheritance, pensions and other source 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."

According to Mr Orilade, all bank accounts belonging to Galaxy have been frozen in order to prevent further dissipation of investors' funds, pending the conclusion of investigation.(NAN)

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