Court remands Afriq Arbitrage CEO over $854K, N590m investment fraud
A Federal High Court in Abuja has ordered the remand of the Chief Executive Officer of Afriq Arbitrage System (AAS), Jesam Michael at the Kuje Correctional Centre over allegations of large-scale investment fraud involving $844,416.36, $10,000, and N590 million.
The charges were brought by the Economic and Financial Crimes Commission (EFCC), which accused Michael of defrauding thousands of investors under the guise of cryptocurrency investment.
Justice Obiora Egwuatu issued the remand order on Tuesday after Michael’s bail application was denied for the second time.
He noted that over 50,000 individuals were allegedly affected by the scheme and stressed the need for a speedy trial while the defendant remains in custody.
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According to the EFCC, Michael and his company operated between September 2022 and June 2023 without authorisation to take public deposits or conduct investment activities. The Commission said this violated Section 44(1) of the Banks and Other Financial Institutions Act, 2020, and further charged the defendants with engaging in unlicensed financial services.
The EFCC also alleged that between October and December 2024, Michael and Afriq Arbitrage System Limited knowingly converted N590 million derived from the sale of properties seized from another suspect, despite knowing the funds were proceeds of unlawful activity.
In another count, he is accused of fraudulently inducing one Ladi Musa Audu to invest $844,416.36 in USDT under false pretences, and similarly convincing Sir Augustine E. Ibolo to invest $10,000 in February 2023. These actions were said to contravene the Advance Fee Fraud and Other Related Offences Act of 2006.
Court filings by the EFCC revealed plans to call witnesses from financial institutions, the Central Bank of Nigeria, and the Securities and Exchange Commission to prove that Michael and his firm lacked the required regulatory approval for investment operations.
During his arraignment, Michael pleaded not guilty to all seven charges. His lawyer, Uchenna Njoku SAN, applied for bail, arguing that the EFCC had previously granted his client administrative bail and that the matter stemmed from a former staff member who had allegedly accessed company funds illegally. He urged the court to grant bail on liberal terms.
However, EFCC counsel Martha Babatunde opposed the bail request, citing fresh petitions from victims and an ongoing investigation. She also informed the court that Michael was apprehended while attempting to leave the country, arguing that he posed a flight risk due to the serious nature of the allegations.
Justice Egwuatu, while noting the constitutional right to bail, ruled that the circumstances of the case warranted the refusal of bail.
He emphasised the growing prevalence of investment fraud in Nigeria and ordered an accelerated hearing. Trial was fixed for 20 June 2025.
The court’s decision follows an earlier ruling on 9 May 2025, when Justice Emeka Nwite also denied Michael bail, stating that his arraignment must take place before any bail application could be entertained.
