Court Convicts 3 Firms Over N1.2Bn Investment Fraud In Lagos
THECONSCIENCE NG reports that the Federal High Court in Ikoyi, Lagos, has convicted three companies for operating illegal investment schemes and defrauding Nigerian investors of over N1.2 billion and $5,000 USD in what authorities described as a wide-scale breach of capital market laws.
Justice D.I. Dipeolu delivered the rulings on Monday, July 14, 2025, in separate judgments involving FARM360 Limited, MCBHADMOS Trans-Atlantic Trade Limited, and Quintessential Investment Company Limited, all of which were found guilty of running unlicensed collective investment schemes in violation of financial regulations.
According to a statement from the Economic and Financial Crimes Commission (EFCC), the Lagos Zonal Directorate 2 had arraigned FARM360 and MCBHADMOS on June 16, 2025, on a five-count charge bordering on illegal fund mobilization and securities violations.
The EFCC alleged that the two companies, between 2021 and 2022, solicited and collected N80 million from multiple investors, promising returns that were never delivered.
Neither firm was registered with the Central Bank of Nigeria (CBN) nor the Securities and Exchange Commission (SEC)—a violation of Nigeria’s capital market laws.
In a separate but related case, Quintessential Investment Company Limited was convicted for a similar offense involving an even larger pool of funds.
The EFCC disclosed that the company aggressively advertised its forex trading scheme across various platforms in 2020 and 2021, promising monthly returns of 35%. Lured by the high-yield promise, investors allegedly committed N1.2 billion and $5,000 USD.
However, the EFCC said, neither capital nor returns were ever paid out, and the company subsequently cut off all communication.
Justice Dipeolu found Quintessential guilty on both counts and imposed a N5 million fine on each charge.
“These convictions send a strong message to fraudulent investment operators and reaffirm our commitment to protecting Nigerian investors,” the EFCC stated.
This wave of convictions marks a significant step in Nigeria’s crackdown on unregulated financial schemes, which have proliferated in recent years amid economic hardship and investor desperation.
The ruling also comes amid increased scrutiny from the SEC and the CBN on the surge of informal fintech operators and unlicensed trading platforms.
The EFCC urged the public to remain vigilant and verify the registration and legitimacy of investment firms before committing funds, particularly those promising unusually high or guaranteed returns.
