An investigation by SaharaReporters has revealed how Nigerian police authorities have been protecting international fraudster Jesam Michael, CEO of Afriq Arbitrage System (AAS).
Sources informed SaharaReporters that Michael’s recent arrest by the police, in collaboration with the Nigeria Immigration Service, for fraud and financial exploitation occurred after much hesitation.
The investigation also uncovered that Jesam Michael had a close relationship with top police officer Effiong Asuquo during his tenure as head of the Special Investigation Unit (S.I.U).
“Jesam Michael is a close pal of a top police officer, Effiong Asuquo, when he was the head of Special Investigation Unit (S.I.U). The officers have been protecting him for years because he always gives them something anytime people complain about his fraudulent platform.
“This was the policy, particularly SIU did not take any meaningful action towards investigating the complaints against him. He bought them. In fact, there were times he would be asked by the police to pay thousands of dollars to bury any serious case against him.
“This was until the head of SIU was changed in mid- 2024 (around June),” one of the victims said.
Furthermore, Akin Fakorede, the Head of the Inspector General of Police Monitoring Unit, has consistently dismissed all evidence against him and maintains his innocence, despite proof that he swindled 56,000 investors and over 590,000 illegal transactions were linked to his fraudulent Ponzi scheme platform.
SaharaReporters also discovered that about $1.6 billion was traced to his wallet, collected from thousands of subscribers.
“Many police officers call him ‘Odogwu’ and he is close to most of them. He is even seen as a philanthropist,” one of the sources privy to police interaction with Michael said.
Wanted For Ponzi Fraud In U.S.
SaharaReporters reported on Wednesday that Michael similarly scammed investors in California, U.S. after fraudulently fleeing with funds from a US-based cryptocurrency platform before it was shut down.
In May 2022, Michael’s cryptocurrency firm, Cryptos OTC Trading Platform Limited, ceased honouring investor withdrawal requests, citing technical issues. Shortly thereafter, the platform stopped operating its website.
Exclusive documents obtained by SaharaReporters revealed that the State of California ordered a shutdown of Michael’s cryptocurrency firm in 2022 for violating sections 25110 and 25401 of the state’s Corporations Code.
The State of California described the platform as a scam, comparing it to a Ponzi scheme.
The order issued by the Commissioner of Financial Protection and Innovation (Commissioner), Clothilde V. Hewlett, was signed by the Deputy Commissioner Enforcement Division, Mary Ann Smith.
According to this referral programme, “Investors would be paid a commission based on the amount of funds deposited by the investors that they recruited”.
The California enforcement division said, “Investors would also be paid additional commissions when the investors that they recruited, in turn, recruited new investors.
“Investors seeking to take advantage of COTP’s referral program created and posted videos to YouTube and posted content on other social media websites to recruit others to invest in COTP.
“In fact, COTP was luring investors into what is known as a High Yield Investment Program (HYIP). HYIPs are unregistered investments typically run by unlicensed individuals – and are often frauds.
“The hallmark of an HYIP scam is the promise of high returns on an annual (or even monthly, weekly, or daily) basis at little or no risk to the investor.”
The Commissioner stated, “On or around May 13, 2022, COTP stopped honoring investor withdrawal requests, claiming that COTP was experiencing technical issues and that COTP would resolve the issues in a matter of days.
“COTP’s promises to resolve the purported withdrawal issues were false and COTP continued to prevent investors from withdrawing funds.
“On or around May 23, 2022, COTP represented to investors that its website had been hacked and that investors would be unable to access their funds for an additional three to five weeks.
“Within the following days, COTP stopped operating its website, leaving investors unable to access or withdraw their funds.
“To date, investors have not received their principal investments or their promised returns. COTP has ceased communicating with investors.”
In Nigeria, despite Jesam Michael defrauding at least 56,000 people, the police initially claimed he had done nothing wrong, citing that the subscribers willingly invested in the scheme.
Five Victims Remanded For Asking For Refunds
Some affected investors told SaharaReporters that DIG Dasuki D. Galadanchi, the Head of the Force Intelligence Department, dismissed their complaints about the fraud.
Additionally, five individuals who reported being defrauded by Michael and asked for refunds were remanded.
Sources identified the five unfortunate victims as Apostle Michael Okoh, Prince Humble Eteng, Dennis Okoi, Donald Michael and Oma Awajioma.
“He (Galadanchi) sent us away saying we are criminals and asked why did they give Jesam Michael their money?” one of the affected investors said.
Another source said, “Since Jesam’s arrest, many police officers have been defending him, claiming he is innocent. The police officers are doing this to protect them. Many of them know that if Jesam Michael is eventually nailed by the law, they are not safe too.
“They have also been involved in the Ponzi scheme. Many of them have taken bribes from him to protect him all these years.
“Akin Fakorede, head of the IGP monitoring Unit is among these officers defending this criminal.
“Another thing that is shocking is that the IGP is also trying to be interested in the matter now. He has also demanded for the phones and systems seized from Jesam Michael by the SIU operatives. Maybe the IGP is afraid there is information implicating him inside the gadgets.”
SaharaReporters learned that Michael wasn’t initially on the police radar when he sought their help to recover approximately $87 million allegedly stolen from his account by his associate, Ayobami Segun Oluwasesan.
However, it was later discovered that Ayobami had stolen about $10 million, not $87.5 million as Michael had claimed. Michael reportedly lied to capitalise on the theft and avoid paying investors. The police recovered about $3 million from Ayobami and also assisted Michael in recovering properties.
Sources revealed that some of these recovered properties were allegedly shared between certain officers and Michael. Meanwhile, numerous victims have been unable to withdraw their principal funds or promised returns from AAS for many months.
The investigation revealed that the case began under Asuquo’s leadership as head of the Special Investigation Unit (S.I.U).
Complaints about Michael’s fraudulent activities were disregarded, and those who invested in his scheme faced punishment for speaking out.
“The properties recovered were converted for Jesam Michael’s personal use. I heard that some of these properties were also shared among top hierarchy police officers. Five people were locked up for complaining that he swindled them.
“He used to call himself untouchable, and claimed that he was being protected by the IG, Kayode Egbetokun. He has been able to deceive the police so much. He told the police that he went for liver transplant and that was when Abayomi stole his money and it was not investigated. He never had any liver transplant.
“But the police never investigated any of his claims; no one ever asked him to show his body. Abayomi stole $10 million but Michael lied so that he would not pay investors all their money. All this was planned with the police. He is friends with many police officers.”
SaharaReporters acquired a video showing police officers endorsing his Ponzi platform during a Zoom meeting with investors.
“So the police were in full support of what he was doing. The DC Monitoring Fakorede is never interested in investigating him. He would say Michael has done nothing wrong,” a source said.
SaharaReporters discovered that Michael’s lawyer is Kanu Godwin Agabi, SAN, a former Attorney General of the Federation (AGF) and Minister of Justice, whom Michael trusts to extricate him from any legal trouble.
The investigation also revealed that Michael was arrested by the immigration service while attempting to flee the country, after receiving warnings from some police officers.
“We heard from police officers that Fakorede insisted that Jesam Michael didn’t commit any offence by defrauding us and that he has a right to trade, and that if some people want their money, they should take their money quietly and leave and others who wanted to remain with him,” one of the victims said.
SaharaReporters learned that, under Nigerian law, investors are protected, and those behind fraudulent schemes should face punishment for their fraud.
Additionally, it was discovered that the Ministry of Justice, the police legal team, and agencies like the Security and Exchange Commission (SEC) and the Federal Inland Revenue Service (FIRS) are keen to expedite Michael’s case. However, the police authorities have been slow to file charges against him.
The SEC traced 596,000 illegal transactions to Michael’s wallet and has detailed records of these transactions.
The SEC is prepared to assist the police in their investigation and eventual prosecution of Michael, given their expertise in cryptocurrency and related matters, but the police have been slow to act, SaharaReporters learnt.
The FIRS is also interested in the case, especially regarding Michael’s failure to pay taxes on transactions amounting to approximately $1.6 billion in his wallet.
SaharaReporters also learnt that Michael somehow obtained Special Control Unit against Money Laundering (SCUML) approval from the Economic and Financial Crimes Commission despite being engaged in illegal activities.
SCUML is a department under the EFCC charged with the responsibility of registering, monitoring, and supervising the activities of Designated Non-Financial Businesses and Professions (DNFBPs) in line with the Money Laundering (Prevention & Prohibition) Act, 2022, and Economic & Financial Crimes Commission (Anti-Money Laundering, Combating the Financing of Terrorism and Proliferation of Weapons of Mass Destruction for Designated Non-Financial Businesses and Professions and other Related Matters) Regulations, 2022.
“He got a SCUML registration from the EFCC for his scheme. It is something you get from the agency to clear him from money laundering. So what you do is to give returns to the EFCC on your activities. This is a man that has done 596,000 transactions on his illegal platform. Does EFCC know about these transactions?” a source privy to information said.
“There was a COTP platform manned by the guy which he crashed in the US. The platform was registered in California and the state is looking for him. This is an international fraudster; it will bring honour to the police to ensure he pays for his crimes.
“He has 56,000 subscribers and the police are joking with it. They are not interested in prosecuting him. Some officers have told us that they dont know the offence he committed,” one of the victims said.
Although Michael is currently in police detention, sources indicated that some high-ranking police officers are already discussing ways to secure his release by granting him bail.
“What we heard is that the police people (officers) are shielding him because the guy is threatening to reveal a lot of secrets and that he has a whole lot of things he has done with these people.
“One of them is that all the properties recovered from Abayomi have been shared among him and some officers.
“Abayomi wrote a petition that he wants his properties back but the police authorities didn’t approve it,” a source said.
“They are looking for strategies to let him off the hook. Some other agencies are involved in the matter so the police officers are stuck. If he gives out only $1 million to the police officers from the platform where he has over $1 billion, it is nothing to him.
“Right now, the authorities are preventing access to the platform so that the amount there and other things will not be exposed.”
Police IG Egbetokun should ensure that the investors receive their payments and are adequately protected.