According to the Economic and Financial Crimes Commission (EFCC), the companies were arraigned on June 16 by the Lagos Zonal Directorate 2 of the EFCC on a five-count charge for operating collective investment schemes without valid licences from the Central Bank of Nigeria (CBN) or the Securities and Exchange Commission (SEC).
The EFCC alleged that between 2021 and 2022, the companies raised approximately N80 million from unsuspecting investors with promises of high returns through agricultural and forex trading ventures. However, they failed to repay the investors or deliver the promised interest. One of the charges noted that they operated without appropriate licences, violating Section 57 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Though the firms initially pleaded not guilty, EFCC investigator Nnadikwu Izuchukwu Collins presented damning evidence, including a formal investor petition revealing that over N93 million was invested in total. Bank statements from Fidelity Bank showed the funds were diverted for personal use, and investigations confirmed that neither company was licensed by the CBN or SEC.
The directors of both firms remain at large, with efforts ongoing to locate and arrest them.
Justice Dipeolu admitted into evidence the petition, bank records, and correspondence with regulatory bodies including the CAC, CBN, and SEC. The court found the companies guilty on all counts and imposed a fine of N5 million per count.
In a related development, the court also convicted Quintessential Investment Company Limited for operating a similar unlicensed investment scheme. The company faced a separate two-count charge and was also found guilty of violating capital market regulations.
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