EFCC arraigns FARM360 and MCBHADMOS in Lagos for N80 million illegal investment scheme run without SEC or CBN approval. Trial continues July 8

The Economic and Financial Crimes Commission has arraigned two companies, FARM360 Limited and MCBHADMOS Trans-Atlantic Trade Limited, before a Federal High Court in Lagos over alleged illegal investment operations that defrauded investors of over N80 million.

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The trial commenced on Monday before Justice D.I. Dipeolu, with both firms facing a five-count charge tied to unauthorised capital market activities.

According to the EFCC, the companies, which operated between 2021 and 2022, engaged in collective investment schemes without obtaining regulatory approval from the Central Bank of Nigeria or the Securities and Exchange Commission.

Investors were allegedly promised high returns from ventures in agriculture and foreign exchange trading, none of which materialised.

The companies were accused of luring unsuspecting Nigerians with enticing offers, collecting millions of naira under false pretences and failing to either deliver returns or refund their clients.

One charge read in court emphasised their lack of licensing under the Banks and Other Financial Institutions Act 2020.

Both companies pleaded not guilty. The prosecution’s first witness, EFCC investigator Nnadikwu Izuchukwu Collins, told the court that a group of defrauded investors had submitted a petition on 21 October 2022.

They reported being misled by FARM360 and MCBHADMOS through “mouth-watering promises” which were never fulfilled.

During investigations, Collins said the EFCC contacted the SEC, CBN, and CAC, whose responses confirmed that the companies were never licensed to operate investment or forex trading services in Nigeria.

He also revealed that Fidelity Bank records showed the funds collected from investors were used for personal spending rather than legitimate business activity.

All directors of the companies have allegedly gone into hiding, and the EFCC is actively seeking their arrest. Several documents were admitted into evidence by the court, including investor petitions, letters from regulatory agencies, and a detailed bank statement from Fidelity Bank.

Justice Dipeolu marked the documents as official exhibits. The trial has been adjourned to 8 July 2025 for continuation, with the prosecution expected to call further witnesses as the case progresses.

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The arraignment signals the EFCC’s continued clampdown on unlicensed capital market operations, warning that regulatory evasion and investment scams will face full legal consequences.