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ABUJA, Nigeria - A Federal High Court in Abuja has ordered the remand of Jesam Michael, the CEO of Afriq Arbitrage System Limited, in Kuje Correctional Centre due to alleged investment fraud.
After Michael's arraignment by the Economic and Financial Crimes Commission (EFCC), Justice Obiora Egwuatu denied his bail application, citing the seriousness of the charges and the evidence against him.
The judge agreed with EFCC attorney Martha Babatunde's argument that even with the current charges, more complaints were still being filed by victims of Michael's ponzi scheme.
Justice Egwuatu pointed out that the EFCC's investigations uncovered over 50,000 investors in Michael's failed investment venture, emphasizing that the aggrieved victims posed a safety concern for the defendant, making it advisable for him to remain in custody until the trial concludes.
The judge called for an expedited trial and ordered Michael's transfer to Kuje Correctional Centre from EFCC custody, highlighting the necessity of a swift trial.
The EFCC, under charge number FHC/ABJ/CR/134/2025, has brought charges against Michael and his company as the 1st and 2nd defendants.
These seven counts include accusations of money laundering and advance fee fraud, alleging that Michael orchestrated an investment scam involving $844,416.36, N590 million, and $10,000.
The commission claims that between September 2022 and June 2023 in Abuja, Michael and his company illegally sought public investments without being a bank or an authorized entity, which is in violation of Section 44(1) of the Banks and Other Financial Institutions Act, 2020.
Furthermore, the EFCC has accused Michael and his company of providing financial services, including investment management, without a proper license and converting N590 million from the sale of properties recovered from Oluwasesan Abayomi between October and December 2024 in Abuja, knowing these funds were the proceeds of illegal activities.
