Justice Deinde Dipeolu of the Federal High Court in Lagos has ordered the final forfeiture of 431 mobile phones allegedly linked to a Chinese-led cyber-fraud syndicate uncovered during a major Economic and Financial Crimes Commission (EFCC) operation in Lagos.
The court granted the forfeiture order following an application filed by the EFCC through its counsel, Hanatu Kofarnaisa.
The application, marked FHC/LAG/MISC/990/2026, sought the permanent forfeiture of the devices allegedly recovered in connection with the activities of the syndicate.
The EFCC brought the application pursuant to Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006, and Section 44(2)(b) of the 1999 Constitution.
How EFCC uncovered an alleged cyber-fraud operation
In an affidavit filed in support of the application, an EFCC investigator, Christopher Augustine, said the phones were recovered in connection with an elaborate cyber-fraud operation allegedly run from a facility known as “HK” in Victoria Island, Lagos.
Augustine told the court that Chinese and other foreign nationals allegedly used the facility to recruit, train, and supervise Nigerian youths for fraudulent schemes targeting victims outside the country.
According to him, the operation came under the EFCC’s radar in December 2024, when operatives raided a seven-storey building identified in reports at the time as the Big Leaf Building on Oyin Jolayemi Street, Victoria Island.
The operation, code-named “Eagle Flush”, reportedly resulted in the arrest of 792 suspects.
The suspects included 148 Chinese nationals, 40 Filipinos, and other foreign nationals, alongside their alleged Nigerian collaborators.
The EFCC investigator alleged that recruits were provided with computers, mobile phones, and foreign telephone lines, which they allegedly used to impersonate foreigners and communicate with prospective victims through platforms including WhatsApp, Instagram, and Telegram.
The alleged victims were said to have been predominantly located in the United States, Canada, Mexico, and various European countries.
Alleged romance and investment scams
The EFCC further alleged that members of the syndicate used a purported online investment platform known as “yooto.com” to lure victims into transferring money after establishing what appeared to be romantic or business relationships with them.
Reports following the arrests had alleged that activation fees on the platform started from $35.
The Commission also identified Genting International Company Limited (GICL) as a company allegedly connected to the operation.
According to the EFCC, GICL was allegedly involved in recruiting and supervising Nigerian youths participating in the schemes.
The Commission further alleged that a Chinese national, Huang Haoyu, also known as Ken, was among those linked to the company.
It is alleged that more than N3.4 billion passed through an account associated with Huang in connection with the suspected activities.
Huang and other members of the alleged syndicate were subsequently prosecuted before courts in Lagos over charges including cyber-terrorism, internet fraud, and money laundering.
Proceedings arising from the wider investigation also involved other Chinese nationals and Genting International.
EFCC seeks permanent forfeiture
According to the anti-graft agency, further investigation into the activities of the syndicate led to the discovery of 431 mobile phones allegedly linked to operators who had been convicted and suspected of using the devices in the commission of the offences.
The EFCC initially secured an interim forfeiture order over the phones from the Federal High Court on July 8, 2026.
Justice Dipeolu subsequently directed the Commission to publish the order in a national newspaper to notify anyone with an interest in the devices to appear before the court and explain why the interim forfeiture should not be made permanent.
The EFCC said it complied with the directive by publishing the order in The Guardian newspaper on August 11, 2026.
After the stipulated period had elapsed without any successful challenge to the interim order, the Commission returned to court and applied for the final forfeiture of the devices.
In its written address, the EFCC argued that Section 17 of the Advance Fee Fraud and Other Related Offences Act empowers the court to order the forfeiture of property reasonably suspected to be proceeds of unlawful activity.
The Commission also argued that the proceedings were non-conviction-based, meaning that a fresh criminal conviction was not required before the property could be permanently forfeited.
It relied on previous judicial decisions, including Dame Patience Jonathan v. FRN and La-Wari Furniture & Baths Ltd v. FRN & Anor, in support of its position.
After considering the application and submissions, Justice Dipeolu granted the EFCC’s request and ordered the final forfeiture of the 431 mobile phones to the Federal Government of Nigeria.
The forfeiture proceedings were brought against the devices themselves under an in rem action and were separate from any fresh criminal prosecution of persons allegedly connected to their use.
