Jesam Michael, founder of Afriq Arbitrage System whom FIJ investigated and reported for fraud, has been sued by the Economic and Financial Crimes Commission (EFCC) over alleged illegal investment activities involving more than $844,000, $10,000 and N590 million.
Per Nairametrics, the EFCC presented a seven-count before Emeka Nwite of the Federal High Court in Abuja on Tuesday. Michael and his company were accused of illegally soliciting funds from the public without authorisation from regulatory bodies.
The commission claimed that between September 2022 and June 2023, Michael, through advertisements, invited individuals to deposit money into AAS, despite not being licensed to operate as a financial institution or investment firm.
READ MORE: Investors Lose Thousands, Maybe Millions of Dollars to Jesam Michael’s AAS
Meanwhile, FIJ investigated and reported that Michael managed to secure a Special Control Unit Against Money Laundering (SCUML) certificate from the EFCC without proper checks.
The EFCC alleged that Michael and AAS operated outside the law by offering financial services and investment opportunities without approval from the Central Bank of Nigeria (CBN) or the Securities and Exchange Commission (SEC).
The anti-graft agency said these actions violated sections of the Banks and Other Financial Institutions Act (BOFIA) and the Money Laundering Act.
Among the charges, the EFCC accused Michael of converting N590 million — part of the proceeds from the sale of two properties seized from another suspect — into his company’s funds, knowing the money was linked to criminal activity.
The properties are located at Ologolo Street off Lekki-Epe Expressway and Nnamdi Azikiwe Road, Lakowe Golf Estate, both in Lagos.
In addition, Michael is accused of defrauding two individuals — Ladi Musa Audu and Sir Augustine Ibolo — of $844,416.36 and $10,000 respectively. The EFCC said he lured them to invest in AAS under the false promise that their investments were safe and refundable, even though he knew those claims were untrue.
The EFCC also said it intends to call witnesses from the CBN, SEC and various financial institutions to testify that neither Michael nor his company had the legal right to collect funds from the public or run an investment platform.
At the bail hearing on Tuesday, Emmanuel Agabi, Michael’s lawyer, told the court that his client had already spent 90 days in detention under both police and EFCC custody and had filed a motion for his release.
In response, EFCC counsel Mary Babatunde presented an affidavit arguing that Michael is a flight risk, noting he was arrested while trying to leave the country. She said the severity of the charges and the weight of the evidence make it unlikely he would return for trial if released.
The EFCC stated that the charges were formally filed on April 16 and it plans to arraign Michael once a judge is assigned to the case.
Justice Nwite clarified that his role is limited to hearing the bail application and adjourned the matter to Monday, April 24, to allow the EFCC time to respond to a further affidavit submitted by Michael’s legal team.
FIJ also found that Michael ran the scheme, worth about $1.6 billion, without paying taxes to the Federal Inland Revenue Service (FIRS). Furthermore, the SEC reportedly traced 596,000 illegal transactions to Michael’s digital wallet.
More than 10,000 investors were on the investment group Jesam ran, according to FIJ’s investigation. Many individuals reacted to the story with accounts of their own losses at the hands of Micheal.
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16 replies on “EFCC Takes Jesam Michael, Whom It Handed SCUML Certificate Without Checks, to Court Over $854,416 Fraud”
This guy Jesam Michael has really caused a lot of us pains while many has not recovered back from this, including myself. We trusted this guy Jesam Michael so much but he was fooling us stealing from us by tricks acting and claiming he is helping us. I have over $800-$1000 investment in AAS and some of my people I brought into the system are also there crying bitterly in pains and sorrow.
Leave him alone allow him to complete his good future plans that the government has failed please.
I invested about $90,000 in AAS and my money is stuck in that platform despite Jesam saying i can get my principle back at anytime but instead he stole my money and been stuck with him for more than 2 years promising he will give me 1,65% per day 🤦♂️, i am from the USA and we already made a complaint to the FBI.
I want my money back , EFCC and Nigerian authorities please work on opening the AAS website to see every investor how much they invest and refund our hard earned money.
How people are convinced to part with their hard earned money still baffles me, maybe it’s not hard earned as I’ve imagined though. Though I don’t have such huge amounts though, but I believe if something is too good to be true, to me it’s not true and can never be. I pray and hope they get to recover their money sha.
Please anyone that can give me a proper description of where Jesam is will appreciate. That man is a devil’s incarnate. I am yet to recover my money. anytime anyone try to protest on the platform group he will block them ASAP.
I have about $400 in AAS. I keep getting promises from one of the admin loveth that funds withdrawal will commence. I didn’t know till now that it’s all fraud. At some point Micheal jesam claimed one abayomi hacked AAS wallet and stole funds that we should be patient for withdrawal.
Jesam Micheal has proved to the whole world that he is a scammer of highest order. He’s a blatant liar and a criminal. Iam sure that if he’s granted bail, he will run away. I pray he’s not granted bail. I have over $6000 in AAS. He has brought agony to many families. I pray that all the affected investors will get justice. The whole world is watching.
When dem dey advice Una for good investment Una no dey gree. A client bought a ppty in early 2023 carcass for in Abuja life camp for 160M sold in Feb this year for 360M Wetin pass that one. Do genuine real estate biz there is moni in it. Verify papers yourself buy mostly in estates so you no go hear story and wait for one year and resell you will get good moni no headache. There is no such thing as quick turnover investment is patience after due diligence. Real estate is good moni. Another client bought a shop in 2023 in d outskirts for 13M sold last week for 40M with abeg from the buyer Wetin pass that one. Na Una wants to be scammed. BC you hear to good to be true stories and do not want to wait you want sharp sharp there is no sharp sharp ask Dangote
Let him not enjoy any of the stolen wealth. Such a wicked guy.
After investing a 100 dollar into AAS, I knew I have made a big mistake because the returns stated having issues, withdrawals was restricted. The guy is nothing but a big scammer. May he face the wrath of the law. Leaving on other people’s sweat and thinking he will be happy.
May he never enjoy the sweat of others.
Big Scammer
The guy jesam is an hardened criminal, he told us that he is under ethical oath that he cannot run away with our money what a criminal he is. So what the EFCC should do if they care for humanity and the investors of aas is to tell jesam Michael to start immediate refund back to the investors that should be the first step. EFCC PLEASE MAKE SURE INVESTORS MONEY ARE RETURNED THAT’S HOW WE ARE GOING TO APPLAUD THEM FOR A JOB WELL DONE
In fact, Jessam Michael is a blatant liar blessed with sugar-coated mouth. We hardly doubted him. I have $4000+ in hooked up in his arbitrage business. I strongly appeal to the honorable judge not to grant his appeal. If he is granted bail, the case should be forgotten because he would run away and never come back for judgment.
The guy had sent many of his victims to early graves, some are still in critical condition because all their money is hooked up in his scam business . We strongly appeal that his appeal should not be considered because he was about to run away when he was arrested.
I also invested over $1200 in the Scammed scheme of AAS promoted by Jesam Micheal, he fooled many of us by believing in him as a god sent but the reverse was the case, I pray he can be made to face the wrath of the law. Adams Mustapha [email protected] 08036944862
It’s not only two people he scammed not thousands of people both Nigerian and foreigners. I and about 10 family and friends are victims. Our total money invested in AAS is about $3500 Is it that EFCC doesn’t want to refund others our hard earned money.He promised refunding us anytime we demand our capital. When my mum was sick , I demanded for mine, he refused and she eventually died. A lot of us put all our life savings there and he brought us all pains. He should be made to refund our money please
I have $4897 in his platform which he had defrauded me. May the long arm of the law judge him rightly.
I want to bare my own side of the story I do understand many people r hurt because of d mishandling of business activities but that does nt mean Jesam Michael is a scammer if he ws he would or never make himself a public figure that can be reach at anytime… It’s in the public domain how Abayomi cause deservice to AAS company he’s actually d reason while many investors fund where stolen nt Jesam Michael as claimed… Efcc can nt say they did nt have knowledge abt d existence of AAS running a digital asset trading sec can nt say they r nt aware too… It’s just witch hunting I see in all these..
U call Jesam Michael a scammer yet he created a token that’s currently trading in almost 6 exchanges do u call dis a scam… I have my fund stuck in AAS bt I hav also gain alot in perticipating token trading with AAST… Why on earth efcc has d ordercity to keep Jesus Michael in their custody for over 90days where is justice here. Abeg efcc should shift jare if Jesam have parted some money with them would they have drag him to court.