EFCC arraigns two firms for allegedly defrauding investors of N80m

EFCC arraigns two firms for allegedly defrauding investors of N80m

Two companies identified as FARM360 Limited and MCBHADMOS Trans- Atlantic on a five-count charge bordering on operating collective investment schemes without a licence either by the Central Bank of Nigeria, CBN, or the Securities and Exchange Commission, SEC by the Economic and Financial Crimes Commission, EFCC.

The two companies were arraigned before Justice D.I. Dipeolu of the Federal High Court sitting in Ikoyi , Lagos on Monday.

EFCC alleged that both firms, between 2021 and 2022, collected the sum of N80,000,000.00 ( Eighty Million Naira) from several investors, but defaulted in refunding them or paying back the interests accrued on their investments.

One of the counts reads: ”That you, FARM360 LIMITED and MCBHADMOS TRANS-ATLANTIC TRADE LIMITED, sometime between 2021 and 2022 in Nigeria, within the Judicial Division of this Honourable court, being companies incorporated in Nigeria, failed to obtain a valid licence from the Central Bank of Nigeria to carry on your business of Investment management and you thereby committed an offence contrary to Section 57 of the Banks and Other Financial Institutions Act 2020 and punishable under Sections 57(5) of the same Act.”

A “not guilty” plea was entered for the company.

The prosecution counsel, Abdulhamid .L.Tukur, consequently, called on Nnadikwu Izuchukwu Collins, an investigator with the EFCC, to review the fact of the case.

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Collins stated that the EFCC, on October 21, 2022, received a petition from a group of investors against the defendants, FARM360 and MCBHADMOS RANS-ATLANTIC TRADE LIMITED, alleging that they claimed to be into agricultural business and forex trading, “with mouth-watering promises of returns on investments .”

He also told the court that the group invested the total sum of N93,000,000 with the defendants.

He further stated that: “In the course of investigations, letters of investigation activities were sent to the Securities and Exchange Commission SEC, banks, the Central Bank of Nigeria, CBN, and then Corporate Affairs Commission CAC, respectively.

“Responses were received from the above institutions and were analyzed accordingly. The response from SEC and CBN revealed that the defendants, FARM360 and MCBHADMOS RANS-ATLANTIC TRADE LIMITED, are not licensed to deal in investment and forex trading business in Nigeria.

“The response from Fidelity Bank showed that the sum of N80,000,000.00( Eighty Million Naira) got from the investors were utilised for personal use. The directors of the companies are all at large and efforts are being made to apprehend them.”

The prosecution counsel then sought to tender, in evidence, the bank statement from Fidelity Bank, petition received by the EFCC from the group of investors, letters to the CAC, CBN and SEC and their responses.

Justice Dipeolu admitted and marked them as exhibits.

EFCC arraigns two firms for allegedly defrauding investors of N80m