Court sends Afriq Arbitrage System CEO, Jesam Michael to Kuje prison over $854.4m, N590m fraud

CITIZENS COMPASS– A Federal High Court in Abuja on Tuesday, ordered that the Chief Executive Officer (CEO) of Afriq Arbitrage System (AAS) Limited, Jesam Michael, be remanded in Kuje correctional centre, Abuja, over 854,416.36 U.S dollars and N590 million fraud.

Justice Obiora Egwuatu issued the order while ruling on Michael’s bail application, shortly after he was arraigned on a seven-count charge bordering on money laundering, and advance fee fraud, among others, brought against him by the Economic and Financial Crimes Commission (EFCC).

Justice Egwuatu refused to grant Michael bail in view of the gravity of the alleged offence and the weight of evidence against him.

The judge noted that, as stated by EFCC’s lawyer, Martha Babatunde, more petitions were still being received by the anti-graft agency and other security agencies from victims of the crimes allegedly committed by the defendant.

He noted that, the claim by the EFCC that there were over 50,000 investors in Michael’s failed investment scheme and that the victims were aggrieved and it would be in his own safety to remain in custody pending the conclusion of the trial.

The Judge ordered accelerated hearing in the case and directed that the defendant be transferred from the custody of the EFCC custody to Kuje prison pending the conclusion of trial.

Justice Egwuatu, who noted that investment fraud is becoming rampant in the country, adjourned till June 20 for the commencement of trial in the charge, marked: FHC/ABJ/CR/134/2025, wherein the EFCC accused Michael and his cryptocurrency trading platform – Afriq Arbitrage System (AAS) Ltd – of defrauding his customers of the sum of 854,416.36 U.S dollars and N590 million.

The EFCC alleged that Michael and his firm, 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 USD 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