The Economic and Financial Crimes Commission (EFCC) on Tuesday arraigned the Chief Executive Officer of Afriq Arbitrage System (AAS) Limited, Mr Jesam Michael, at the Federal High Court, Abuja, for alleged investment fraud.
The commission arraigned Michael and his company, a cryptocurrency trading platform, on a seven-count charge of money laundering and advance fee fraud, among others.
The EFCC accused Michael of investment fraud involving $844,416.36, N590 million, and another $10,000.
The anti-graft agency alleged that the defendant, between September 2022 and June 2023, in Abuja, 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.
The EFCC also accused Michael and his company of engaging in the specialised business of financial services, including investment management, without a valid license.
Justice Obiora Egwuatu rejected the defendant’s bail plea because of the gravity of the offence and the weight of evidence against him.
He agreed with the argument of the EFCC’s lawyer, Martha Babatunde, that despite the instant charge, more petitions were still being received by the commission and other security agencies from victims of the defendant’s Ponzi scheme.
The judge observed that the commission, in its argument, also submitted that its further investigation had revealed that there were over 50,000 investors in Michael’s failed investment scheme.
Egwuatu, who ordered accelerated hearing of the case, directed Michael to be transferred from the EFCC custody to Kuje Correctional Centre pending the conclusion of his trial.
He adjourned the matter till June 20 for trial.
