A Federal High Court in Abuja has ordered that the Chief Executive Officer (CEO) of Afriq Arbitrage System (AAS) Limited, Jesam Michael, be remanded in Kuje Correctional Centre in Abuja over alleged investment fraud.
Justice Obiora Egwuatu issued the order on Tuesday while ruling on Michael’s bail application.
This was shortly after Michael was arraigned on a seven-count charge ordering on money laundering and advance fee fraud brought against him by the Economic and Financial Crimes Commission (EFCC).
Justice Egwuatu refused to grant him bail, given 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 security agencies from his alleged victims.
He stated that it would be better for Michael to remain in custody pending the conclusion of the trial since the EFCC said there are over 50,000 investors in his failed investment scheme.
The judge ordered an accelerated hearing in the case and directed that the defendant be transferred from the custody of the EFCC to Kuje prison.
Justice Egwuatu, who noted that investment fraud is becoming rampant in the country, adjourned till June 20 for the commencement of the trial.
In the charge, marked: FHC/ABJ/CR/134/2025, the EFCC accused Michael and his cryptocurrency trading platform – Afriq Arbitrage System (AAS) Ltd – of defrauding his customers to the tune of $854.416.36 and N590 million.
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 licence.
The defendants were also 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 $844,416.36 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.
