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Fraud

Afriq Arbitrage System Scandal: Details of Trial and Victim Testimony

Strategic Insights

— 1 min read

Taiye Agbaje A Warri-based fish farmer, Mr. Edafe Imirike, testified in court that he was deceived into investing $10,788.64 in Afriq Arbitrage System (AAS) Ltd, a cryptocurrency platform owned by Mr. Jesam Michael. Imirike claimed that Michael assured him of the safety of his money before investing, showing him a CAC document and EFCC certificate to prove the platform's legitimacy. Imirike invested his money, as well as inviting two of his uncles to join the platform, and received returns on his investment.

Key Takeaways:

  • The Economic and Financial Crimes Commission (EFCC) charged Afriq Arbitrage System (AAS) Ltd and its CEO, Mr. Jesam Michael, with advance fee fraud involving $844,416.36 and N590 million.
  • AAS is accused of inviting the public to deposit funds through advertisements, which is contrary to Section 44(1) of the Banks and Other Financial Institutions Act, 2020.
  • Mr. Edafe Imirike testified that he was convinced by the legitimacy of the platform, shown by CAC and EFCC certificates, and invested $10,788.64.
  • Imirike received returns on his investment, but later withdrew his petition against the company, claiming it was in full and final settlement.
  • Imirike testified that the N1 million and Toyota Corolla 2016 Model given to him by the defendant were compensation, not settlement.
  • Justice Egwuatu adjourned the matter until June 27 and July 4 for continuation of trial.
  • Over 50,000 investors are reportedly involved in Michael's failed investment scheme.

Statistics:

  • $10,788.64: the amount Imirike invested in Afriq Arbitrage System
  • $844,416.36: the amount accused of being involved in the advance fee fraud
  • N590 million: the amount accused of being involved in the advance fee fraud
  • Over 50,000: the number of investors reportedly involved in Michael's failed investment scheme
  • $11,910.00: the amount Imirike claimed he received as returns on his investment, but later denied
  • 137 dollars: the amount Imirike withdrew from his investment
  • September 2022 to June 2023: the period during which AAS allegedly operated in Abuja

Sources:

  • Nigerian News Agency (NAN)
  • Economic and Financial Crimes Commission (EFCC)
  • Edafe Imirike's testimony in court

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