The Federal High Court in Abuja on Tuesday, ordered the remand of Mr Jesam Michael, the Chef Executive Officer (CEO) of Afriq Arbitrage System (AAS) Limited, in Kuje Correctional Centre over alleged investment fraud.
Justice Obiora Egwuatu, in a ruling in Michael’s bail application shortly after he was arraigned by the Economic and Financial Crimes Commission (EFCC), refused his bail plea on the grounds of the gravity of the offence and weight of evidence against him.
Justice Egwuatu 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 ponzi scheme of the defendant.
The judge observed that the anti-graft agency, in its argument, also submitted that its further investigation had revealed that there were over 50,000 investors in Michael’s failed investment scheme.
He also held and that the victims were aggrieved and it would be in his own safety to remain in government custody pending the conclusion of the trial.
Egwuatu, who ordered accelerated hearing of the trial, directed Michael to be transferred from the EFCC custody to Kuje Correctional Centre pending the conclusion of his trial.
He emphasised the need for a speedy trial while the defendant remained in custody.
The News Agency of Nigeria (NAN) reports that the EFCC had, in the charge marked: FHC/ABJ/CR/134/2025, dragged Michael and his company, a cryptocurrency trading platform, to court as 1st and 2nd defendants.
The commission, in the seven-count charge bordering on money laundering, advance fee fraud, among others, accused Michael of investment fraud involving 844,416.36 U.S dollars, N590 million and another 10,000 U.S. dollars.
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, 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 also 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 Oluwasesan Abayomi, 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 USDT into the Afriq Arbitrage System investment scheme, under the false representation that the investment was safe and refundable upon request.
It said 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.
Upon resumed hearing on Tuesday, Babatunde, who appeared for the EFCC, informed the court that the matter was slated for Michael’s arraignment and that she was ready to proceed.
Michael’s counsel, Uchenna Njoku, SAN, did not object and the charge was read to the defendant’s who pleaded not guilty to all the counts.
After the prosecution sought a date for trial, Njoku informed the court of his client’s application for bail dated May 4 but filed May 6.
The senior lawyer argued that his bail request was in line with the Administration of Criminal Justice Act (ACJA), 2015.
Njoku urged the judge to exercise his discretional power and grant Michael bail on liberal terms.
He said prior to now, the defendant had no criminal record and the EFCC had granted Michael administrative bail.
He maintained that 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.
On her part, Babatunde urged the court to refuse the application made by the defendant.
She said though the EFCC had granted Michael an administrative bail before, the lawyer said the defendant was unable to meet the terms.
She contended that there were over 50,000 investors affected in the scam and that the EFCC was still receiving petitions against Michael.
“That further to paragraph 3 (1), the commission is still receiving other petitions against the applicant and investigation has revealed that there are over 50,000 investors into the applicant’s failed investment scheme.”
In associated affidavits by the EFCC, the commission argued that Michael 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.
Justice Egwuatu, while delivering the ruling, said a suspect is entitled to bail in line with constitutional provisions.
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, who held that investment fraud is now rampant in Nigeria, adjourned the matter until June 20 for trial.
