Court orders Magara to refund $135,000 lost in D9 Ponzi scheme

What the report says

The Civil Division of Uganda’s High Court has ordered Smart Protus Magara to repay more than $135,000, or about Shs 500 million, to two Tanzanian investors after finding him personally liable for funds lost in the collapsed D9 Investment Club scheme. The ruling was delivered by Justice Bernard Namanya, according to The Observer.

The court heard that Goodluck Francis Kway and George Kessy met Magara in Kampala and were told the online platform could generate unusually high returns. Court records cited by the paper say the two deposited $58,098 and $79,945 respectively into Magara’s personal Equity Bank account, but they later said they never received the promised profits or their principal back.

Magara denied owning or promoting D9, saying he was only a participant and that the money was used for e-money purchases on the platform. The judge, however, found that explanation unproven because Magara did not provide transaction records or bank statements showing the funds were transferred as claimed, nor evidence that the investors had been compensated through any official receiver process after D9 collapsed.

The court ordered repayment of $135,016, plus 20% annual interest from 2022 until full payment and legal costs. The case adds to the broader record of losses linked to D9, a Ponzi scheme that drew investors in Uganda and neighboring countries before falling apart in 2017.