The Federal High Court in Ikoyi, Lagos has convicted two companies — FARM360 Limited and MCBHADMOS Trans-Atlantic Trade Limited — for engaging in illegal capital market activities.
The two firms were arraigned by the Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission (EFCC) before Justice D.I. Dipeolu on June 16, 2025, on a five-count charge for operating collective investment schemes without the required licenses from either the Central Bank of Nigeria (CBN) or the Securities and Exchange Commission (SEC).
Between 2021 and 2022, the companies reportedly collected ₦80,000,000.00 from investors without making refunds or paying accrued interest.
One of the charges read: “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 both companies.
Prosecuting counsel, Abdulhamid L. Tukur, called Nnadikwu Izuchukwu Collins, an EFCC investigator, to review the case facts. Collins stated that the EFCC received a petition on October 21, 2022, alleging that the firms claimed to be involved in agriculture and forex trading, promising high returns on investment.
He said investigations revealed the companies received a total of ₦93 million, and responses from the SEC and CBN confirmed they were not licensed to conduct investment or forex trading. Analysis of records from Fidelity Bank showed that ₦80 million raised from investors was used for personal expenses, and that company directors were currently at large.
Tukur tendered documents including bank statements, petitions, and official responses, all of which were admitted as exhibits by the court.
At the end of proceedings, Justice Dipeolu convicted both companies on all counts and imposed a ₦5 million fine on each count — totaling ₦25 million per company.
In a separate case, the court also convicted Quintessential Investment Company Limited for similar offences after its arraignment by the EFCC on a two-count charge of operating an unlicensed investment scheme.
One count read: “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, prompting the prosecution to once again call Collins to review the case.
He told the court that over 25 petitions were received from investors who claimed they were promised 35% monthly returns on forex investments. They collectively invested ₦1.2 billion and $5,000, but neither returns nor capital were paid.
Further investigation revealed that the company was not licensed by the SEC or CBN, and records from UBA showed that ₦1.19 billion received from investors was used for personal expenses and paying previous investors.
EFCC presented bank statements, petitions, and regulatory responses, which the court admitted as evidence.
Justice Dipeolu convicted Quintessential Investment Company Limited on both counts and ordered it to pay a ₦5 million fine on each — totaling ₦10 million.