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Court remands Jesam Michael over $854, N590m fraud charges

By DailyTimesNGR 11 June 2025 513 No comment

By Andrew Orolua

The Federal High Court in Abuja on Tuesday refused the bail application filed by the Chief Executive Officer of the cryptocurrency trading platform Afriq Arbitrage System (AAS), Jesam Michael.

Trial court judge sent Jesam Michael to the Correctional Centre over an 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 issued by Justice Obiora Egwuatu following the reading of a seven-count charge.

Ruling on bail application the judge observed that about 50,000 victims are affected by the investment fraud and emphasized the need for a speedy trial while suspects remains in custody.

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 said that investment fraud is now rampant in Nigeria. He refused the defendant’s bail and ordered 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.

In the charge EFCC alleged that Michael and his company,Afriq Arbitrage System ltd, between September 2022 and June 2023 in Abuja, while not being a bank or an authorized 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.

The EFCC further accused Michael and his company of engaging in the specialized 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 authorized to conduct specialized 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.

The EFCC further accused Michael and his company of engaging in the specialized 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.”