How Ovaioza Deceived Investors with Carefully Worded Agreement, Making it Hard to Recoup Investment
- The self-styled CEO of Ovaioza Farm Produce Storage Business' agreement with investors will make it difficult for investors to have their money back
- An agreement sighted by Legit.ng stated in part that investors shall forfeit their entire investment due to natural causes or unforeseen situations
- But a legal practitioner has picked holes on the clauses saying the OFSB CEO can still be prosecuted
A carefully worded agreement by the CEO of Ovaioza Farm Storage Business will leaving investors fighting to recoup their money, making it a hard knot to crack for many as their hard-earned money may have been allegedly frittered away by Ovaioza.
The agreement, which was sighted by Legit.ng, states that investors will lose their investment due to natural causes or unforeseen circumstances.
Source: Facebook
In clauses 10-12, Ovaioza said that her investors may lose their money and she will only intimate them in writing and not indemnify them as stated by most agreements.
The clauses said:
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“That if this agreement is terminated before the farm produce is sold without cogent reasons and without informing the business owner in writing, they shall forfeit the unpaid sums and returns due to them.
That if the agreement is terminated by the business owner before the farm produce is sold without cogent reasons and without informing the investor in writing, she shall be liable to pay back the investor the total sum invested.
“Where the business owner has conducted her due diligence and acted in good faith, any loss accruing to the business as a result of natural causes and unforeseeable circumstances shall be borne by the investor.
According to Chukwudi Umejei, a lawyer, Ovaioza knew she was going to go bust at some time and so inserted the clauses in order to exonerate herself from future losses or in the event that she bolts away with investors’ money.
Umejei said:
“I think she had the plan of running away with people's money, else she would not have inserted those clauses which will make it hard for her to reimburse investors.
“But there is a way they can pin her down, according to the eleventh clause. She deliberately terminated the business without informing investors in writing as stipulated in that clause”
Ovaioza was arrested on Easter Monday, April 18, 2022, after investors cried out on social media that she scammed them of billions of naira.
Unconfirmed reports say that she was processing an investment visa in an undisclosed country for the sum of $1 million and had bought a house in the US for about $400,000.
EFCC identifies 5 Ponzi scheme operators in Nigeria, set to effect arrest soon
Legit.ng has reported that the anti-corruption agency, the Economic and Financial Crimes Commission (EFCC) said it is set to arrest five Ponzi scheme operators across Nigeria in the next couple of weeks. According to Nairametrics, a source in the anti-corruption agency said this.
The source, however, declined the further statement on the names of the schemes and their operators.
The affected companies are among the ones some financial analysts have warned investors on social media to avoid.
Source: Legit.ng
