Alleged Investment Fraud: Court Denies Afriq System’s CEO Bail

•Orders remand in Kuje correctional center till end of trial

Alex Enumahin Abuja

Justice ObioraEgwuatu of a Federal High Court in Abuja, on Tuesday, refused to admit to bail the Chief Executive Officer (CEO) of Afriq Arbitrage System (AAS) Limited, Mr. Jesam Michael, who is standing trial on an alleged investment fraud running into hundreds of million naira.

The judge took the decision based on the weight of the allegations against the defendant as well as the defendant’s safety.

While turning down the bail application, Justice Egwuatu subsequently ordered that he be remanded in the Kuje Correctional Center, pending the determination of trial.

Michael was arraigned by the Economic and Financial Crimes Commission (EFCC), on a seven-count charge bordering on money laundering, advance fee fraud, among others, to the tune of $844,416.36, N590 million and another $10,000.

He was arraigned alongside his company, a cryptocurrency trading platform.

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, contravened Section 44(1) of the Banks and Other Financial Institutions Act, 2020, and is punishable under the same Act.

He pleaded not guilty to all the counts following which his lawyer, Mr. UchennaNjoku, SAN, informed the court of his client’s application for bail dated May 4 but filed May 6, adding that his bail request was in line with the Administration of Criminal Justice Act (ACJA), 2015.

While praying the judge to exercise his discretional power and grant Michael bail on liberal terms, Njoku stated that before now, the defendant had no criminal record and that the EFCC had granted Michael administrative bail.

He maintained the issue was associated with a former staff of Michael who allegedly accessed the company’s “wallet” and moved investors’ funds, adding that the case is pending before another court.

Responding, EFCC’s lawyer Martha Babatunde urged the court to refuse the application adding that though the EFCC had granted Michael an administrative bail before, he was unable to meet the terms.

She contended there were over 50,000 investors affected in the scam and that the EFCC was still receiving petitions against Michael.

The anti-graft agency also informed the court that the 1st defendant 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.

Delivering ruling in the bail application, Justice Egwuatu, who observed that a defendant is entitled to bail in line with constitutional provisions, held that it is in the best interest of Nigeria and the affected investors “to refuse the defendant bail” due to the gravity of the offence and weight of evidence against him.

Besides, the judge observed that the over 50,000 investors in Michael’s failed investment scheme, according to the EFCC, were aggrieved and as such it would be in his own safety to remain in government custody pending the conclusion of the trial.

He therefore ordered accelerated hearing of the case and directed that Michael be transferred from the EFCC custody to Kuje Correctional Center pending the conclusion of his trial.

The judge who held that investment fraud is now rampant in Nigeria, adjourned the matter until June 20 for trial.

The EFCC had in the charge marked: FHC/ABJ/CR/134/2025, accused Michael and his company of engaging in the specialised business of financial services, including investment management, without a valid license.

The defendants were alleged to have between October and December 2024 in Abuja, “converted the cumulative sum of N590 million being part of the funds generated from the sale of properties recovered from OluwasesanAbayomi, knowing that the funds constituted proceeds of unlawful activity.”

The offence, the EFCC said, is contrary to Section 18(2)(b) of the Money Laundering (Prevention and Prohibition) Act.

They were equally alleged to have, sometime in 2022 in Abuja, with intent to defraud, induced Ladi Musa Audu to deposit the sum of $844,416.36 into the Afriq Arbitrage System investment scheme, under the false representation that the investment was safe and refundable upon request.

The offence is 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, among other counts.