Court gavel
Federal High Court in Abuja has ordered the remand of Mr. Jesam Michael, CEO of Afriq Arbitrage System (AAS) Limited, in Kuje Correctional Centre over alleged investment fraud. Justice Obiora Egwuatu refused Michael’s bail plea, citing the gravity of the offence and weight of evidence against him.
The Economic and Financial Crimes Commission (EFCC) accused Michael and his company of investment fraud involving $844,416.36, N590 million, and $10,000.
The commission alleged that Michael’s company, a cryptocurrency trading platform, invited the public to deposit funds without being an authorized entity, contravening Section 44(1) of the Banks and Other Financial Institutions Act, 2020.
The EFCC alleged that Michael and his company engaged in specialized financial services, including investment management, without a valid license. They were also accused of converting N590 million, part of funds generated from the sale of properties recovered from Oluwasesan Abayomi, knowing that the funds constituted proceeds of unlawful activity.
Justice Egwuatu agreed with the EFCC’s argument, stating that there were over 50,000 investors affected and that the commission was still receiving petitions against Michael. The judge emphasized the need for a speedy trial while the defendant remained in custody. “It is in the best interest of Nigeria and the affected investors to refuse the defendant bail,” the judge ruled.
The EFCC’s lawyer, Martha Babatunde, argued that Michael was unlikely to return to face trial due to the gravity of the charges and the weight of evidence. “The commission is still receiving other petitions against the applicant, and investigation has revealed that there are over 50,000 investors into the applicant’s failed investment scheme,” she said.
Michael’s counsel, Uchenna Njoku, SAN, had argued for bail, citing the defendant’s clean record and cooperation with the EFCC. Njoku claimed that the issue was associated with a former staff member who allegedly accessed the company’s “wallet” and moved investors’ funds.
The court has adjourned the matter until June 20 for trial. The EFCC’s allegations against Michael and his company include money laundering, advance fee fraud, and other related offences. If convicted, Michael could face severe penalties for his alleged role in the Ponzi scheme.
