This case revolves around allegations of financial mismanagement and lack of transparency within the Alpha Trust Investment Club (ATIC), leading thirty-two disgruntled investors to seek legal redress against a former Commissioner of Police, Aderemi Adeoye, and four other defendants. The claimants, who collectively invested a substantial sum exceeding N1.4 billion, accuse Adeoye of operating ATIC, a purportedly multi-billion naira enterprise, primarily through Facebook, without a physical office or a formal corporate structure, raising concerns about the legitimacy and accountability of the investment club’s operations. Their primary grievance centers on the alleged lack of transparency and accountability in the management of ATIC’s funds and assets.
The lawsuit, filed at the Lagos State High Court, highlights the claimants’ demand for a comprehensive account of ATIC’s finances and assets. They allege that Adeoye, along with other defendants, misrepresented the nature of ATIC, initially portraying it as a professionally managed investment club focused on real estate and the stock market, with Adeoye himself in an advisory role. However, the claimants later discovered that ATIC was registered as a private business, allegedly co-owned by Adeoye and two other defendants. This discovery fueled their suspicions and prompted demands for accountability, which were reportedly met with expulsion from the group.
The claimants’ affidavit details a series of alleged irregularities in the management of ATIC. They claim that despite substantial contributions totaling over N332 million between 2018 and 2023, no credible proof of investment or title documents for the purportedly acquired properties were ever provided. The affidavit lists several properties, including land in Abuja, Ibeju-Lekki, and Epe, allegedly purchased with members’ funds, but the claimants contend that these acquisitions lack proper documentation and may not have even been fully paid for. This raises serious questions about the actual use of the invested funds and the veracity of the defendants’ claims regarding property acquisitions.
Furthermore, the lawsuit alleges that Adeoye personally promoted a “Customised Crypto Investment” scheme, promising a guaranteed 10% monthly return. This scheme attracted further investment from members, but similarly, no evidence of legitimate cryptocurrency investments or returns has been provided. The combined allegations of undocumented property acquisitions and an opaque cryptocurrency investment scheme paint a picture of potential financial impropriety and a lack of transparency in the management of ATIC’s funds. The claimants argue that their expulsion from the group was a retaliatory measure for questioning the management of the club and demanding accountability.
The claimants, represented by senior counsel Olu Daramola of Afe Babalola & Co., are seeking various reliefs from the court, including a declaration that the unilateral valuation of their shares without an independent audit is unlawful. They are also challenging their expulsion from the club, arguing that it was carried out without due process. Crucially, they are seeking a court-ordered audit of ATIC’s finances and assets by a certified accountant appointed by the President of the Institute of Chartered Accountants of Nigeria. This independent audit is seen as essential to unraveling the complex financial dealings of ATIC and determining the true status of the members’ investments.
The case has an international dimension, with the claimants residing in various countries including the UK, US, Canada, Cyprus, Australia, and Nigeria. Many of them were drawn to ATIC through Adeoye’s active presence on Facebook, where he projected an image of a principled police officer and anti-corruption advocate. This online persona played a significant role in attracting investors, who placed their trust in Adeoye’s perceived integrity. The case highlights the potential risks associated with online investment platforms and the importance of thorough due diligence before committing funds. The court’s decision to adjourn the case to June 26, 2025, for the hearing of the claimants’ application to appoint an independent auditor is a crucial step in the legal proceedings. The appointment of an independent auditor will be instrumental in determining the veracity of the claimants’ allegations and providing a clear picture of ATIC’s financial dealings. The outcome of this case will have significant implications for the investors seeking to recoup their investments and for the defendants facing serious allegations of financial mismanagement.
