The Federal High Court in Abuja has remanded the CEO of a cryptocurrency trading platform Afriq Arbitrage System (AAS), Jesam Michael, at the Correctional Centre over an alleged investment fraud case involving $844,416.36, $10,000, and N590 million, instituted by the Economic and Financial Crimes Commission (EFCC).
The remand order was approved after Michael’s bail was again denied following the reading of a seven-count charge before Justice Obiora Egwuatu of the Federal High Court, Abuja, on Tuesday.
The judge observed that about 50,000 victims are affected by the investment fraud and emphasised the need for a speedy trial while the suspect remains in custody.
The EFCC alleged that Michael and his company, between September 2022 and June 2023, in Abuja, while not being a bank or an authorised entity to take deposits, invited the public through advertisements to deposit funds with Afriq Arbitrage System Limited.
This, according to the Commission, is in contravention of Section 44(1) of the Banks and Other Financial Institutions Act, 2020, and is punishable under the same Act.
EFCC Allegations
The EFCC further accused Michael and his company of engaging in the specialised business of financial services, including investment management, without a valid license.
“That you, JESAM MICHAEL UBI, and AFRIQ ARBITRAGE SYSTEM LIMITED, between October and December 2024 in Abuja, within the jurisdiction of this Honourable Court, converted the cumulative sum of N590,000,000.00 (Five Hundred and Ninety Million Naira), being part of the funds generated from the sale of properties recovered from Oluwasesan Abayomi—namely, Ologolo Street, off Lekki-Epe Expressway, and No. 1 Nnamdi Azikiwe Road, Lakowe Golf Estate, Lekki, Lagos—knowing that the funds constituted proceeds of unlawful activity. You thereby committed an offence contrary to Section 18(2)(b) of the Money Laundering (Prevention and Prohibition) Act.”
“That you, JESAM MICHAEL UBI, and AFRIQ ARBITRAGE SYSTEM LIMITED, sometime in 2022 in Abuja, with intent to defraud, induced Ladi Musa Audu to deposit the sum of $844,416.36 USDT into the Afriq Arbitrage System investment scheme, under the false representation that the investment was safe and refundable upon request. You knew this representation to be false, thereby committing an offence contrary to Section 1(2) of the Advance Fee Fraud and Other Related Offences Act No. 14 of 2006 and punishable under Section 1(3) of the same Act.”
“That you, JESAM MICHAEL UBI, and AFRIQ ARBITRAGE SYSTEM LIMITED, sometime in February 2023 in Abuja, with intent to defraud, induced Sir Augustine E. Ibolo to deposit the sum of $10,000.00 USDT into the Afriq Arbitrage System investment scheme, under the same false assurances. This also constitutes an offence under the same Advance Fee Fraud Act,” the EFCC charges, filed by E.E. Iheanacho, SAN, partly read.
- According to EFCC court documents, the anti-graft agency plans to call witnesses from financial institutions, the Central Bank of Nigeria (CBN), and the Securities and Exchange Commission (SEC) to testify that the defendants were not authorised to conduct specialised banking or solicit public investments without regulatory approval.
What Transpired in Court
At the arraignment before Justice Obiora Egwuatu on Tuesday, Uchenna Njoku SAN announced his appearance for Michael and the company, while Martha Babatunde, counsel for the EFCC, announced her appearance.
- The charges were then read to Michael, to which he pleaded not guilty.
- The prosecution then asked for a date for trial.
- Njoku said that while he would not oppose the fixing of a trial date, his client has an application for bail, and the prosecution has responded formally to it.
- He argued that his bail request is in line with the Administration of Criminal Justice Act.
- Njoku urged the judge to exercise his jurisdiction and discretion and grant his client bail on “liberal” terms.
“Prior to now, the defendant has no criminal record,” the senior lawyer said, emphasizing that the EFCC had granted Michael administrative bail.
- He maintained that the issue is associated with a former staff member of Michael who allegedly accessed the company’s “wallet” and moved investors’ funds, adding that the case is pending before another court.
- On her part, Babatunde urged the court to refuse the application made by the defendant.
- She confirmed the EFCC had issued the defendant administrative bail, but on certain bail terms.
She contended that there are over 50,000 investors affected by the scam and that the EFCC was still receiving petitions against Michael.
“That further to paragraph 3 (1), 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,” her affidavit partly reads.
- In associated affidavits by the EFCC, the Commission argued that Michael was arrested while attempting to leave the country and is unlikely to return to face trial due to the gravity of the charges and the weight of evidence.
Court Ruling
Ruling on the bail application, Justice Egwuatu said a suspect is entitled to bail in line with Constitutional provisions.
The judge observed that the EFCC had granted the suspect bail but later opposed the granting of bail by the court.
Having considered the facts, the judge said it is in the best interest of Nigeria and the affected investors “to refuse the defendant bail.”
- The judge held that investment fraud is now rampant in Nigeria.
- He refused the defendant’s bail and ordered an accelerated hearing in the case while fixing the trial date for 20 June 2025.
- The judge ordered the defendant to be remanded at the Kuje Correctional Centre.
What to Know
Nairametrics previously reported that Justice Emeka Nwite, a vacation judge at the time, had on May 9, 2025, refused the bail application of Jesam Michael.
Justice Nwite refused the bail motion filed by Michael’s legal team, emphasizing that a charge had already been filed against him.
The judge directed that his arraignment must take place before any bail application can be considered.
