THE Federal High Court in Abuja on Tuesday ordered the remand of Mr. Jesam Michael, Chief Executive Officer of Afriq Arbitrage System (AAS) Limited, at the Kuje Correctional Centre over alleged involvement in a multi-million-dollar investment fraud.
Justice Obiora Egwuatu gave the order following Michael’s arraignment by the Economic and Financial Crimes Commission (EFCC) on a seven-count charge bordering on money laundering, advance fee fraud, and operating financial services without a valid license.
Ruling on Michael’s bail application, Justice Egwuatu denied the request, citing the severity of the allegations, weight of evidence, and the growing number of petitions from victims still being received by the EFCC and other security agencies.
The judge also raised concerns over the safety of the defendant and the need to prevent interference with the ongoing investigation.
“The volume of complaints, with over 50,000 aggrieved investors involved, makes it imperative to keep the defendant in custody for his own safety and to ensure justice is served,” the judge stated.
Michael and his firm, a cryptocurrency trading platform, were charged in case number FHC/ABJ/CR/134/2025. The EFCC accused them of fraudulently soliciting public deposits amounting to $844,416.36, N590 million, and an additional $10,000 — despite not being a licensed financial institution.
According to the prosecution, Michael induced one Ladi Musa Audu to invest $844,416.36 in the scheme under false assurances of safety and guaranteed returns.
The EFCC further alleged that the defendants, between October and December 2024, converted N590 million—proceeds from the sale of recovered properties—knowing they were linked to unlawful activity.
Michael was also accused of operating an investment business and offering financial services without a valid license, in violation of the Banks and Other Financial Institutions Act, 2020, and the Money Laundering (Prevention and Prohibition) Act.
At Tuesday’s hearing, EFCC counsel Martha Babatunde informed the court that the defendant had previously been granted administrative bail but failed to meet the conditions. She argued that Michael attempted to flee the country before his arrest, raising fears he might abscond if released on bail.
Michael’s counsel, Uchenna Njoku (SAN), urged the court to grant bail on liberal terms, arguing that his client had no criminal record and had cooperated with investigators.
He attributed the issues to a former employee who allegedly accessed the company’s cryptocurrency wallet and diverted investors’ funds—a matter he claimed is pending before another court.
Justice Egwuatu, while acknowledging the constitutional right to bail, ruled that the circumstances and scale of the alleged fraud warranted the denial of bail in the interest of justice and investor protection.
“Given the disturbing rise in investment fraud cases across the country, and the weight of evidence presented, bail is hereby refused,” the judge ruled.
He ordered Michael’s transfer from EFCC custody to Kuje Correctional Centre and directed an accelerated hearing of the case, which was adjourned to June 20 for commencement of trial.