Nigeria: Transport Boss, Dalori Arrested Over Alleged N7bn Investment Fraud
London, April 24, 2019 (AltAfrica)-The Nigeria Economic and Financial Crimes Commission (EFCC) has arrested the Chief Executive Officer of Galaxy Transportation and Construction Services Limited, Babagana Dalori, for allegedly defrauding 27, 400 Nigerians to the tune of about N7billion through fake promises of mouth-watering returns on their investment in his companies.
Dalori, who is currently undergoing interrogation in the Commission, was said to had perpetrated the fraud through a company he incorporated in 2012 with one tricycle (Keke NAPEP), which through pool investments by members of the public later boasted of 50 tricycles.
The entrepreneur later diversified into other business ventures while promising mouth-watering returns to investors.
The Commission’s investigators, according to its image maker, Tony Orilade, 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 suck 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, which aimed at convincing members of the public to invest in his companies.
One of his victims said “he even went to the extent of organizing Nollywood stars to produce a movie for him to further promote public investment into his company. He specifically organized some actors and actresses in Kannywood to act in a movie called “Zero Hour” to show the need for people to invest in Galaxy.
“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”.
Dalori’s modus-operandi, Orilade said was typical of Nigerian wonder banks-accepting deposits from members of the public when his company is not a licensed financial institution, the suspect and his company have committed a criminal act punishable by the Banks and Other Financial Institutions Act.
At the moment, all bank accounts belonging to Galaxy have been frozen in order to prevent further dissipation of investors’ funds, pending the conclusion of investigation.
His media aide, Cletus Onoja, however, blamed Dalori’s inability to honour his obligation to his investors on the loss of one of his companies’ largest dredgers in Jere sand mining site in Kaduna State.