The Federal High Court sitting in Ikoyi, Lagos, on Monday, July 14, 2025, convicted two companies, FARM360 Limited and MCBHADMOS Trans-Atlantic Trade Limited, for illegally collecting N80 million from investors and defaulting on repayment following illegal capital market operations in Lagos.
Justice D.I. Dipeolu convicted the two companies, according to a statement by the Economic and Financial Crimes Commission (EFCC) on Monday.
The companies were arraigned by the Lagos Zonal Directorate 2 of the EFCC on Monday, June 16, 2025, on a five-count charge bordering on operating collective investment schemes without a licence from either the Central Bank of Nigeria (CBN) or the Securities and Exchange Commission (SEC).
EFCC Allegations
The EFCC alleged that “both firms, between 2021 and 2022, collected the sum of N80,000,000.00 (Eighty Million Naira) from several investors but defaulted in refunding them or paying back the interests accrued on their investments.”
One of the counts reads:
“That you, FARM360 LIMITED and MCBHADMOS TRANS-ATLANTIC TRADE LIMITED, sometime between 2021 and 2022 in Nigeria, within the Judicial Division of this Honourable Court, being companies incorporated in Nigeria, failed to obtain a valid licence from the Central Bank of Nigeria to carry on your business of investment management and thereby committed an offence contrary to Section 57 of the Banks and Other Financial Institutions Act 2020 and punishable under Section 57(5) of the same Act.”
A “not guilty” plea was entered on behalf of the companies.
What Transpired in Court
- The prosecution counsel, Abdulhamid L. Tukur, called Nnadikwu Izuchukwu Collins, an EFCC investigator, to present the facts of the case.
- Collins stated that on October 21, 2022, the EFCC received a petition from a group of investors against FARM360 and MCBHADMOS Trans-Atlantic Trade Limited.
- The petitioners alleged that the companies claimed to be involved in agricultural business and forex trading, “with mouth-watering promises of returns on investments.”
- The official told the court that the group invested a total sum of N93,000,000 with the defendants.
“In the course of investigations, letters of inquiry were sent to the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), the Corporate Affairs Commission (CAC), and relevant banks,” Collins said.
“Responses were received from these institutions and analyzed accordingly. The responses from the SEC and CBN revealed that the defendants, FARM360 and MCBHADMOS TRANS-ATLANTIC TRADE LIMITED, are not licensed to conduct investment and forex trading business in Nigeria.”
He added: “The response from Fidelity Bank showed that the sum of N80,000,000.00 (Eighty Million Naira) obtained from investors was utilized for personal use. The directors of the companies are at large, and efforts are ongoing to apprehend them.”
- The prosecution tendered as evidence the bank statement from Fidelity Bank, the petition received by the EFCC, letters to the CAC, CBN, and SEC, and their responses.
Court Ruling
- Justice Dipeolu admitted the documents and marked them as exhibits.
- At Monday’s sitting, Justice Dipeolu convicted the companies on all counts and ordered them to pay a fine of N5,000,000 (Five Million Naira) on each of the five counts.
Related Development
In a related development, the judge also convicted Quintessential Investment Company Limited for illegal capital market operations following its arraignment by the Lagos Zonal Directorate 2 of the EFCC on a two-count charge of operating collective investment schemes without a licence from the Central Bank of Nigeria.
The EFCC stated that petitioners alleged the defendant made widespread adverts in 2020 and 2021, calling on the public to invest in its forex trading business with a promise of 35% monthly returns.
“Based on the defendant’s assurances, investors cumulatively invested N1.2 billion (One Billion, Two Hundred Million Naira) and $5,000 (Five Thousand United States Dollars).”
“They further alleged that at maturity, neither the returns nor the capital were received. The defendant also evaded all communication, prompting a complaint to the Commission,” the EFCC stated.
Justice Dipeolu convicted the company on both counts and ordered a fine of N5,000,000 (Five Million Naira) on each count.
