The Federal High Court in Abuja on Tuesday denied a fresh bail application by Jesam Michael, Chief Executive Officer of Afriq Arbitrage System (AAS) Limited, who is currently on trial over a multi-million-dollar Ponzi-style investment fraud.
Justice Obiora Egwuatu, in a ruling delivered at the resumed hearing, held that the defendant’s application which was filed on the grounds of deteriorating health lacked merit. The judge affirmed that the Kuje Correctional Centre, where Michael is being held, is capable of managing his medical condition and that his alleged ailment poses no danger to fellow inmates.
This is the second time the embattled fintech entrepreneur has been denied bail. A previous request was rejected on June 10, when the court cited the gravity of the charges, the volume of investor petitions, and concerns for the defendant’s own safety amid widespread anger from victims.
The Economic and Financial Crimes Commission (EFCC) opposed the new application, with prosecution counsel Geraldine Ofulue arguing that it was a rehash of previously dismissed arguments. She noted that Michael remains a flight risk and that the EFCC continues to receive fresh petitions from aggrieved investors.
“There is nothing from the correctional authorities to suggest they are unable to care for the defendant’s health,” Ofulue said, urging the court to deny the application.
In defense, Michael’s lawyer, Chief Kanu Agabi, SAN, appealed to the court’s discretion, describing bail as a constitutional right. “Though bail is a right, it is what the judge says the law is, that it is,” Agabi argued, while assuring the court that his client would not abscond if granted bail under manageable terms.
Justice Egwuatu sided with the prosecution, reiterating that the continued detention of the defendant was both necessary and lawful, especially given the scale of the alleged investment scam and the likelihood of witness interference or escape.
Michael was arraigned on June 10 by the EFCC alongside his company, Afriq Arbitrage System Limited, on a seven-count charge involving alleged investment fraud and money laundering totaling $844,416.36, N590 million, and an additional $10,000.
The EFCC further alleged that the company operated an unlicensed investment platform that defrauded thousands of Nigerians and foreign nationals under the promise of high-yield crypto returns. According to the prosecution, over 50,000 investors were affected.
Following his arraignment, the court ordered Michael’s remand in Kuje Correctional Centre and granted accelerated hearing of the trial.
The matter was adjourned to July 25 for continuation of trial.
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