U.S. SEC Drags Nigerian CEO to Court Over Massive Real Estate Fraud

The U.S. Securities and Exchange Commission (SEC) has taken legal action against Nigerian-born entrepreneur Joseph Nantomah, accusing him of orchestrating a $1.9 million real estate fraud scheme.

Filed on August 1, 2025, in Wisconsin’s Eastern District Court, the SEC’s lawsuit targets Nantomah and three of his Wisconsin-based companies: Investors Capital LLC, Global Investors Capital LLC, and High Income Performance Partners LLC.

According to the complaint, between May 2020 and January 2024, Nantomah raised funds from over 30 investors, promising to purchase, renovate, and flip properties for high returns.

Most of the investors were members of the Nigerian-American community who trusted his pitch and believed in his so-called “American dream” success story.

However, the SEC alleges that Nantomah diverted at least 80% of the $1.9 million collected for personal use and unrelated ventures.

He promoted himself as a millionaire investor with a $23 million real estate portfolio, having migrated from Africa in 2016 with just $4,700.

Yet, public records show he owned only 11 properties worth around $1 million during that period.

Court documents also revealed that Nantomah hosted seminars and coaching classes where he showcased his supposed achievements, winning over hopeful investors. He promised annual returns but allegedly failed to deliver on these commitments.

In a related civil case decided on May 13, 2025, the court granted default judgment against Nantomah and his company, Investors Capital LLC. Plaintiffs Alfred Olusanya and Olayinka Nnochiri testified they had invested $55,000 and $50,000 respectively, expecting returns that never materialized.

The court ruled that the agreement was a Ponzi scheme, awarding each plaintiff $25,000 in exemplary damages and an additional $25,000 in punitive damages for deceptive trade practices. The judge described Nantomah’s actions as intentional and malicious.

While Nantomah defended himself, claiming transparency and arguing that his net worth included that of his business partners, the court found his statements misleading. He insisted the plaintiffs approached him voluntarily, attended his trainings, and were never coerced.

Still, the court emphasized that the deals lacked transparency and involved no real flipping of properties. It concluded that Nantomah’s goal was to misappropriate investor funds for personal gain.

The SEC seeks permanent injunctions to ban Nantomah from offering securities, along with penalties and repayment of funds. The legal battle continues, and more victims may yet come forward.

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