Porkmoney Founders Accused Of Multi-million Dollar Fraud Flee To Dominica Amid Interpol Manhunt
Porkmoney founders accused of multi-million dollar fraud flee to Dominica amid Interpol manhunt
Gloria Igberaese and Muyiwa Folorunsho, a Nigerian couple wanted on multimillion-dollar fraud charges, have reportedly fled to Dominica Island to avoid arrest.
The entrepreneurs allegedly used their co-founded company, Divergent Enterprise, which operated businesses such as Landlagos, PorkMoney, Hyberfactory, and Porkoyum, among others, to defraud Nigerians of millions of dollars through a series of Ponzi schemes.
Following a petition filed by Mr Chijioke Ukaegbu and other victims, the couple was declared wanted. Sylnam Strategies, an intelligence research firm, coordinated the petition against the suspect.
The suspects were allegedly accused of defrauding investors of over N1 billion in a petition submitted to federal authorities on January 21, 2021.
“However, these funds were diverted to personal use, including the acquisition of luxury properties and foreign citizenship,” the petition stated.
Separate arrest warrants for them have been issued by the Lagos Division of the Federal High Court on charges of obtaining money by deception and stealing.
“He is wanted by the police for obtaining money under false pretenses, stealing, and fund diversion,” according to a notice issued by the Nigeria Police Force's Interpol section in Lagos.
“If observed, apprehend and surrender to the nearest police station or the office of the commissioner of police Interpol Section Force Criminal Investigation Department Annex Alagbon Ikoyi Close, Lagos,” the documents added.
The perfect investment trap
Gloria and Muyiwa have been involved in a variety of investment ventures in Lagos over the years. Among their most successful ventures were Landlagos, through which they pretended to be realtors and land developers, and PorkMoney, through which they crowdfunded investments in pig farming.
Landlagos initially focused on land sales but later expanded into land development investment. Among these land developments were those in the vicinity of Ibeju Lekki and Lakowe.
A former employee revealed to Technext that Muyiwa did not own the lands in which he solicited investment.
“We sold undocumented land that was acquired solely through word of mouth.”
He explained that the idea was to raise enough money to purchase and develop the land through crowdsourcing.
“The cheapest land we sold was N3 million per plot, and because each sale included a commission, employees were rewarded for sugarcoating reality and promoting sales.”
The couple, on the other hand, had other plans. Recent revelations indicate that the couple diverted funds to personal accounts while investors were stalled.
Similarly, PorkMoney accepted investments of up to N1 million with the promise of a 20% return in one year.
According to our source, several investors recovered their funds during the first few sales, but those who invested later were duped.
This prompted accusations that the founders operated the business in the manner of a Ponzi scheme, compensating existing investors with new investor funds until they allegedly stole enough money to run.
Running from Justice
The indications that the PorkMoney co-founders were pulling a fast one did not appear overnight. As recently as 2019, the CEOs came under fire on Twitter from former employees who accused them of fraud, creating a toxic work environment, deducting from their salaries, and firing them for minor infractions.
According to Ada, one of the alleged former employees, the couple was defrauding clients and concealing their marital status in public.
Gloria maintained at the time that she never treated any employee unfairly, claiming that she did what was necessary to survive as a business owner in Nigeria.
However, recent developments have revealed a web of deceptions. Another former employee revealed that the workplace was extremely toxic, with severe salary deductions for any minor error.
She added that they frequently hired unqualified employees who are easily bossed and fired. “They hired your graduates who were woefully underqualified and in desperate need of money,” the former employee explained.
She also detailed her harrowing experience of being laid off when business slowed and became unprofitable. “When they realized that the new business would not succeed, they fired everyone.”
The wanted couple is on the run after the cat was let out of the bag. According to reports, they purchased foreign citizenships in Dominica, an island nation that has developed a reputation as a haven for fraudsters attempting to evade the law.
The island, according to reports, is selling its citizenship and diplomatic immunity to the highest bidder. One of its most popular sales was that of Diezani Alison-Madueke, Nigeria's former Minister of Petroleum Resources, who was on trial for embezzling billions of dollars in oil revenues.
According to a 2019 Aljazeera documentary, the cost of diplomatic immunity varies between $250,000 and $2 million, depending on the individual.
With millions of dollars stolen, the couple would not have had difficulty obtaining a Dominican passport.
The many dangers of investments
The story of the PorkMoney founders' scam is just one of numerous instances that have soured many Nigerians on investment.
Many have yet to recover from the fallout from popular schemes such as MMM and, more recently, Racksterly, which crashed and left their investors in the lurch.
Despite the difficulties, investment via digital platforms is rapidly becoming a viable source of income for many Nigerians.
With its growing popularity, there is an increasing expectation of these platforms to deliver on their return on investment guarantees.
However, with fraudsters mingling with legitimate businesses via similar methods, there is an increasing need for additional safeguards for investors.
The Securities and Exchange Commissions' (SEC) new licensing requirements and regulations on crowdfunding and investments are a good start, but additional steps may be necessary.
Due to the country's dire economic circumstances, Ponzi schemes have grown in popularity, spawning an industry worth several billions of Naira.
The prospect of accumulating wealth in a challenging economy is alluring. Despite the fact that many Nigerians are wary of these schemes, many continue to fall victim as the perpetrators evolve.
From education to increased enforcement, both the private and public sectors must do more to combat such schemes.
