Justice D.I. Dipeolu of the Federal High Court in Ikoyi, Lagos, on Monday convicted two companies—FARM360 Limited and MCBHADMOS Trans-Atlantic Trade Limited—for illegal capital market operations.
According to a statement by the Economic and Financial Crimes Commission (EFCC), the firms were arraigned on June 16 by the Lagos Zonal Directorate 2 of the EFCC on a five-count charge. The charges related to operating collective investment schemes without valid licenses from either the Central Bank of Nigeria (CBN) or the Securities and Exchange Commission (SEC).
Between 2021 and 2022, both companies allegedly collected N80 million from investors but failed to refund the principal or pay interest accrued on the investments.
One charge states that FARM360 Limited and MCBHADMOS Trans-Atlantic Trade Limited operated without a valid CBN license, violating Section 57 of the Banks and Other Financial Institutions Act 2020.
The companies pleaded “not guilty.” During the trial, EFCC investigator Nnadikwu Izuchukwu Collins was called to present evidence.
