A Warri-based Fish Farmer, Mr Edafe Imirike, on Friday, told the Federal High Court in Abuja that he was deceived into investing the sum of $10, 788 and 64 cents in Afriq Arbitrage System (AAS) Ltd, a cryptocurrency platform.
The company is charged with advance fee fraud by the Economic and Financial Crimes Commission (EFCC).
Imirike, the 1st prosecution witness (PW-1), told Justice Obiora Egwuatu while being led in evidence by the Economic and Financial Crimes Commission (EFCC)’s legal team led by Geraldine Ofulue with Martha Babatunde.
The witness, who identified Mr Jesam Michael, the Chief Executive Officer (CEO) of AAS Limited, in court, said Michael assured him of the safety of his money before investing.
“In 2022, October to be precise, my sister who resides in Canada told me about Afriq Arbitrage System (AAS) Limited and I joined the telegraph platform which was owned by the defendant.
“He told me what to expect.
“He showed me a CAC (Corporate Affairs Commission) document and EFCC certificate to show that the platform was legit
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“I invested the sum of 10, 778 U.S. dollars, 64 cents from my fish farming,” he said.
He said he also invited two of his uncles into the platform.
During cross examination by the defence lawyer, Uchenna Njoku, SAN, the witness admitted that he invested his money because he was convinced that the investment was genuine.
“You will not have invested if you believe it was a crime?” the lawyer asked.
“I invested based on the CAC and the EFCC certificates and that the platform was genuine.
“That our capital will be secured. I never knew he has the spare key to take the money whenever he wishes,” he responded.
When asked if his uncles and sister were still alive, the witness responded in the affirmative.
“Did anyone of them gave you letter of authority to represent them,” Njoku asked.
“I manage the account. I can’t remember if they give me letter,” he responded.
When asked if he had received returns on his investment, he responded in the affirmative.
“Just as you receive returns in the investment in your name, so your uncle and others did,” the lawyer asked, and Imirike said: “We received.”
The witness said he indicated in his extrajudicial statement the returns on his investment.
“I withdrew a total of 137 dollars,” he said.
He agreed that he withdrew his first petition against the company at the police station, but based on the assurance that he would get his invested money back.
When the lawyer put it to the witness that he wrote at the police station that he invested the sum of 10, 788 U.S. dollars and 74 cents, Imirike said it was incorrect.
When Njoku also confronted Imirike with a question that he collected the returns of 11, 910. 00 U.S. dollars, the witness said it was not correct.
“It was because you realised you have withdrawn more than you invested that you decided to settle with the defendant?” the lawyer asked.
“Not correct,” the witness said.
“In full and final settlement of all your interest, the defendant undertook to give you the total sum of N1 million and a Toyota Corolla 2016 Model and he did,” the lawyer said.
“Not correct,” the witness responded.
Imirike, however, said that the N1 million and the car given to him were not for settlement but compensation.
He said he had sold the car.
“I suggest to you that the only reason you filed your petition on May 8, 2025, was because you heard the defendant had been arraigned in court and you felt you can get a second bite,” the lawyer said, but the witness said it was not correct.
Justice Egwuatu adjourned the matter until June 27 and July 4 for continuation of trial.
The News Agency of Nigeria (NAN) reports that Justice Egwuatu had, on June 10, ordered the remand of Mr Michael in Kuje Correctional Centre over alleged investment fraud.
The judge, in a ruling in Michael’s bail application shortly after he was arraigned by the EFCC, refused his bail plea on the grounds of the gravity of the offence and weight of evidence against him.
Justice Egwuatu agreed with the argument of the EFCC’s lawyer, Babatunde, that despite the instant charge, more petitions were still being received by the commission and other security agencies from victims of the ponzi scheme of the defendant.
The judge observed that the anti-graft agency, in its argument, also submitted that its further investigation had revealed that there were over 50,000 investors in Michael’s failed investment scheme.
He also held that the victims were aggrieved and it would be in his own safety to remain in government custody pending the conclusion of the trial.
The judge, however, ordered an accelerated hearing of the trial.
NAN reports that the EFCC had, in the charge marked: FHC/ABJ/CR/134/2025, dragged Michael and his company, a cryptocurrency trading platform, to court as 1st and 2nd defendants.
The commission, in the seven-count charge bordering on money laundering, advance fee fraud, among others, accused Michael of investment fraud involving 844,416.36 U.S dollars, N590 million and another 10,000 U.S. dollars.
The EFCC alleged that Michael and his company, between September 2022 and June 2023 in Abuja, while not being a bank or an authorised entity to take deposits, invited the public through advertisements to deposit funds with Afriq Arbitrage System Limited.
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.
NAN observes that at Friday’s sitting, crowd of victims stormed the court to observe proceedings.
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