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A former Lord Mayor of Leeds who is the wife of a high-profile Nigerian Senator must hand over a £1m luxury mansion after investigators found it was bought using funds routed through a 'black market' transfer system. Abigail Marshall Katung, 49, has lost her fight with the UK law enforcement agency responsible for tackling organised crime and drug trafficking and will now lose the luxury home on Leeds lavish "millionaire's row" in the upmarket Alwoodley district of the city she began buying in 2015.

The property has been seized by the (NCA) after they won a High Court battle with the Labour councillor over the rights to the house on Sandmoor Drive - the most expensive postcode in the West Yorkshire city. The house had been previously owned by a businessman who was suspected of money laundering offences. During the court hearing, Mrs Katung said she had entered into an agreement with the previous owner to buy the house in 2015.

The NCA launched an investigation after she paid a £400,000 deposit of the contracted £1m price tag to the businessman

But the sitting Labour Party councillor, who represents the Little London and Woodhouse ward, never completed the purchase.

The court heard the majority of the funds were sent from Nigeria, where Mrs Katung was born, to the UK using an informal money transfer service which she described as the "black market", although she said it was not illegal.

But now the High Court has ruled that despite the payments made, Mrs Katung had no legitimate interest or right to the property, and it will now be transferred to the NCA.

The property sits along the most expensive homes on the market with one home recently listed at £3 million.

The affluent residents make no secret of their wealth, with each towering mansion boasting bold lavish statement pieces in their entrances. Tourists regularly descend to feast their eyes on a range of huge electric gates, some with gold-plating, floral, gothic and classical features.

In 2024, Mrs Marshall Katung became the 130th Lord Mayor of Leeds - and the first person of African descent chosen to hold the prestigious title. Born in Nigeria, she moved to Leeds to study politics, and was elected to represent Little London and Woodhouse ward in 2019.

Her husband, Sunday Marshall Katung, 64, is a lawyer who has served as the Senator Representing Kaduna South Senatorial District since 2023. He was previously a member of the House of Representatives of Nigeria representing Jaba/Zangon Kataf Federal constituency of Kaduna State.

The NCA said it accepted title to the house in 2020, as part of a £10m civil recovery agreement with the businessman. At the time, no other interests in the property were declared, the NCA statement said.

But the High Court judge presiding over the case last week found Mrs Katung, who served as Lord Mayor from 2024 to 2025, had no legitimate interest or right to the property, and noted that there were "telling omissions" in her evidence.

The judge also said he was "not satisfied that she was a particularly reliable witness".

It was heard that most of the funds used for Mrs Katung's deposit had been sent from Nigeria to the UK via an informal value transfer system, which the NCA statement said she described as a "parallel" or "black" market.

However there is no suggestion she knew about the alleged criminality of the formal owner, the NCA said.

As well as the house being handed over, the NCA said Mrs Katung must pay damages for living in the mansion as well as legal costs.

Rob Burgess, head of asset denial at the NCA, said: "The NCA uses both civil and criminal powers to investigate the provenance of assets in the UK believed to have been acquired using the proceeds of crime.

"The court's finding here will allow us to fully recover a property we accepted title to in 2020, ensuring that a substantial sum can be returned to the public purse."

Mrs Katung, who is currently abroad, told the that she has intends to appeal the decision of the court.

In a statement, she said [sic]: "First, I intend to appeal on both the facts and the law. Particularly, the judgment reflects neither my consistent account, nor the documentation I provided. Because it is plainly not appropriate for me to comment on the details of the appeal, which will be considered by a higher court in due course, that is all I can sensibly say for now.

"Secondly, I made full disclosure of this matter to Leeds City Council, and my political colleagues, before today. Whilst this is dreadfully upsetting to me and my family, I have not sought to hide away. I want to continue to represent my constituents, it is the most satisfying task I have ever undertaken and it is a complete privilege to be able to do so. I recognise that enquiries will have to be undertaken in order to preserve public confidence in the political system in which I operate. I will cooperate with that process fully and unreservedly.

"People have been enormously kind. I accept that, in being kind they are taking me on trust. Trust has to be earned and I intend to continue to earn it, as I have done throughout my time as a public servant."

A spokesperson for the said an internal investigation into Mrs Katung was taking place.

A Leeds City Council spokesperson said: "We were unaware of the personal civil court case between the former Lord Mayor of Leeds, Abigail Marshall Katung and the National Crime Agency.

"We are currently examining the High Court judgement and are unable to comment further at this time."

Prior to her election as a councillor Mrs Marshall Katung founded the David Oluwale Memorial Association (DOMA) in memory of David Oluwale, a Nigerian migrant to the UK who arrived Leeds in 1949, but got drowned in River Aire in 1969 with two British police officers held responsible for his death. In November 1971, the prosecution of those police officers made it the first and only time any prosecution for the death of a black person would be successfully carried out against state officials. A memorial to Mr Oluwale has been repeatedly vandalised since its installation.