The Economic and Financial Crimes Commission (EFCC) has arraigned two companies before the Federal High Court in Ikoyi, Lagos, for allegedly operating illegal investment schemes that defrauded investors of approximately N80 million.
FARM360 Limited and MCBHADMOS Trans-Atlantic Trade Limited appeared before Justice D.I. Dipeolu on Monday, facing a five-count charge related to unauthorized operation of collective investment schemes without proper licensing from either the Securities and Exchange Commission (SEC) or the Central Bank of Nigeria (CBN).
Unauthorized Investment Operations
According to the EFCC, the companies allegedly solicited and collected investments totaling N80 million between 2021 and 2022. Investors were reportedly promised high returns on investments in agriculture and forex trading, but neither received their capital back nor the promised returns.
One of the charges 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 Section 57(5) of the same Act."
Both companies pleaded not guilty to all charges.
Investigation Findings
EFCC investigator Nnadikwu Izuchukwu Collins testified that the Commission received a formal complaint on October 21, 2022, from a group of affected investors. The total amount invested reportedly reached N93 million.
During the investigation, the EFCC contacted various regulatory bodies including the SEC, CBN, and the Corporate Affairs Commission (CAC). Responses confirmed that neither company possessed the required licenses to operate investment or forex-related businesses in Nigeria.
Bank records from Fidelity Bank revealed that the N80 million collected from investors was allegedly diverted for personal use rather than invested as promised.
Collins further informed the court that the directors of both companies remain at large, with efforts ongoing to locate and apprehend them.
The prosecution tendered several documents as evidence, including the original petition, bank statements, and responses from relevant agencies, all of which were admitted and marked as exhibits by Justice Dipeolu.
The case has been adjourned to July 8, 2025, for continuation of trial.
This case highlights the increasing prevalence of unauthorized investment schemes in Nigeria, where operators promise unrealistic returns to unsuspecting investors. Financial experts advise Nigerians to verify the legitimacy of investment companies with regulatory bodies like SEC and CBN before committing their funds.
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