Lagos traders protest N600m loss to Ponzi scheme

A businesswoman, Chinyere Emeka-Atu, has been accused of defrauding traders and market women of over N600m in Lagos State. The woman used her company, Family Food Support Association, to gather unsuspecting members of the public, including petty traders, to part away with N9,000 every month to get a higher return on their investments. The victims were said to have been promised a return of N200,000 cash and N90,000 worth of foodstuffs after nine months of investments in the association’s scheme. However, for proper coordination, the businesswoman reportedly created about 39 groups headed by an independent leader under the association. People from different parts of the country, who invested in the scheme, were reportedly divided into groups. Things, however, took another turn when Emeka-Atu started defaulting in the payment of the promised money and donation of food items to those who invested in the scheme. The situation was said to have created uproar, as some of the aggrieved victims reported the matter to the police, as Emeka-Atu was arrested. She was arraigned before a Tinubu Magistrate’s Court on April 12, 2022. The Magistrate, A.O. Alogba, was said to have remanded the businesswoman in custody and adjourned the case for hearing. At the resumed hearing, our correspondent, who was present in court, heard as the prosecuting counsel, M.A. Animashaun, prayed the court for additional 15 days to file proper charges at the High Court. "Every member has been complying with this, but since June 2021, members who joined the association in September 2020 have yet to get their benefits till date. In January 2022, Emeka-Atu amended the constitution and said only members with 13 additional persons are entitled to N200,000. Our leaders begged us to comply which we did, but we have yet to receive any dividends up till now.” Another victim, Amaka Eze, a single mother, while crying, said to avoid being defrauded and to ascertain that the business was legitimate, she visited the association’s office on Toyin Street, Lagos.