EFCC Convicts Three Firms for Illegal Capital Market Operations in Lagos

Justice D.I. Dipeolu of the Federal High Court sitting in Ikoyi, Lagos, on Monday, July 14, 2025, convicted two companies, FARM360 Limited and MCBHADMOS Trans-Atlantic Trade Limited, for illegal capital market operations.  

The companies were arraigned by the Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission, EFCC,  on Monday, June 16, 2025, 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.  

It was 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 facts of the case.

Collins, in his review of the facts of the case, had 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 had, therefore, tendered, in evidence, the bank statement from Fidelity Bank, the 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. 

At Monday’s sitting , Justice Dipeolu convicted the companies on all the counts and also ordered them to pay a fine of N5,000,000( Five Million Naira ) on each of the five counts . 

In a related development, the judge also convicted another company, Quintessential Investment Company Limited, for illegal capital market operations, following its arraignment by the Lagos Zonal Directorate 2 of the EFCC on a two - count charge bordering on operating collective investment schemes without a licence by the Central Bank of Nigeria,CBN. 

One of the counts reads: “That you, Quintessential Investment Company Limited, sometime within January and December 2020 in Nigeria, within the Judicial Division of this Honourable court, being a company incorporated in Nigeria, failed to obtain a valid licence from the Central Bank of Nigeria, CBN, 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, hence Tukur called on Collins to review the facts.  

Collins, while reviewing the facts of the case, had stated that the Commission, between 2021 and 2022, received over 25 petitions from various investors, including one Wisdom Odianosen Okoduwa, against the defendant, Quintessential Investment Company Ltd., and its alter ego, Joshua Adeyinka Kayode. 

According to him, “the petitioners alleged that the defendant made wide-range adverts  in 2020 and 2021 calling on members of the public to invest in his forex trading business, with a promise of 35% monthly return on their investments.

“ Based on the defendant’s assurances, they cumulatively invested the total sum of N1.2bn( One Billion, Two Hundred Million Naira) and $5,000.00 ( Five Hundred Thousand United States Dollars). 

Continuing,  Collins had said: “They further alleged that, at the maturity of their investments, the return on investments and capital were never received. They also alleged that the defendant had been evading all communications, hence they wrote a letter of complaint to the Commission.” 

He had further told the court that, in the course of investigations, letters of investigation activities were sent to the Security and Exchange Commission, SEC, banks, the Central Bank of Nigeria, CBN, and the Corporate Affairs Commission, CAC, respectively. 

“ Responses were received from the above institutions and were analyzed accordingly. The responses from the SEC and the CBN revealed that the defendant, Quintessential Investment Company Limited, is not licensed to deal in investment and forex trading business in Nigeria. 

“Further analysis  on the defendant’s account in United Bank of Africa, UBA, revealed that the defendant received the  total sum of N1, 195,646,432.25 ( One Billion, One Hundred and Ninety-five Million, Six Hundred and Forty-six  Thousand, Four Hundred and Thirty-two Naira and Twenty-five Kobo) and this money was disbursed for personal use and paying back existing investors,” he had added. 

He had, thereafter, tendered in evidence the statements from United Bank for Africa, the petition received by the EFCC from a group of investors, investigation reports capturing other investors, banks’ statements, letters to the CAC, CBN, SEC and UBA and their responses, which were admitted and marked  as exhibits.

In his ruling on Monday, Justice Dipeolu convicted the company on counts one and two and ordered it to pay a fine of N5,000,000( Five Million Naira ) on each of the two counts .