Michael, who is currently facing trial following petitions from complainants and fraud charges filed by the Economic and Financial Crimes Commission (EFCC), said the senior police officer, a CSP, told him the IGP had directed her to collect 30 plots of land from properties recovered during an investigation into his company.

According to Michael, when he refused, the officer allegedly called him again five days later, insisting that the IGP wanted the plots converted into cash, estimating each plot at over ₦30 million.

Michael said he rejected the demand, explaining that the assets were meant to help his company repay investors.

“She sent for me when I came, she said the Inspector General of Police sent her to collect 30 plots of land from the land we collected from Abayomi but I told her we don’t have any land to give her or the Inspector General of Police because we are looking for money to pay investors,” he said.

“She called me 5 days later that Inspector General of Police said I should turn the 30 plots of land into cash and each plot of land cost above N30 million. When I told her I’m not giving any plots, she said to me every property collected from Abayomi would be taken back to him, Abayomi,” Michael alleged, adding that he recorded the conversations and kept both audio and WhatsApp evidence.

Michael further claimed that shortly after his refusal, police officers stormed his residence without a formal invitation, seized his cars, and detained his security personnel.

According to him, he was later arrested, and his case file was transferred to another police unit before being handed over to the EFCC.

Michael claimed that his properties, including a house in Jabi, Abuja, were acquired from profits made through cryptocurrency trading between 2020 and 2024, not from investors’ funds.

Michael’s allegations come amid a wider dispute involving a former associate, Abayomi, who he claims stole company funds to purchase luxury assets.

He claimed that Abayomi confessed during interrogation and signed a settlement agreement to return the properties but later reneged.

Michael said he and Abayomi initially agreed to an out-of-court settlement. Abayomi and his lawyer signed a settlement agreement and deposited a sworn affidavit in court promising to return the misappropriated funds. Michael alleged that while Abayomi returned some properties, he failed to deliver a flash drive containing company money, prompting his arrest and ongoing trial.

In his statement, Michael defended the source of his personal properties, including a house in Jabi, Abuja, saying they were purchased with profits from cryptocurrency trading between 2020 and 2024, not investors’ funds.

Michael said he has evidence, including audio recordings and WhatsApp messages, documenting all interactions with the police and the demands for land.

Last Monday, SaharaReporters reported that Michael had been granted bail by a Federal High Court in Abuja.

SaharaReporters learned that he was released on N300 million bail on Monday, following his statement absolving Egbetokun of any involvement in his alleged Ponzi scheme.

As part of the bail conditions, Michael is required to present two sureties.

In June 2025, SaharaReporters reported that Michael had been ordered to be remanded in Kuje Correctional Centre by the Federal High Court in Abuja over alleged investment fraud, money laundering, and advance fee fraud.

Justice Obiora Egwuatu issued the remand order on following Jesam’s arraignment on a seven-count charge filed by the EFCC.

The charges relate to an alleged fraudulent cryptocurrency trading scheme that reportedly defrauded investors of $854,416.36 and ₦590 million.

At the time, the court refused Michael’s bail application, citing the gravity of the charges and the volume of evidence presented by the EFCC.

Justice Egwuatu also referenced ongoing investigations, noting that the EFCC and other security agencies were receiving additional petitions from new victims.

“The defendant’s safety is also of concern, considering there are over 50,000 investors affected by this alleged fraudulent investment scheme,” Justice Egwuatu remarked.

The judge ordered an accelerated hearing of the case and directed that Jesam be transferred from EFCC custody to Kuje prison pending the trial’s conclusion.

In the case numbered FHC/ABJ/CR/134/2025, the EFCC alleges that Jesam and his company, between September 2022 and June 2023, unlawfully solicited public deposits through advertisements, operating without the required licenses under the Banks and Other Financial Institutions Act (BOFIA), 2020.

According to the anti-graft agency, Afriq Arbitrage System Limited engaged in cryptocurrency-based investment services without authorisation, in breach of Nigerian financial regulations.

The EFCC further accused Jesam of laundering ₦590 million, which was allegedly proceeds from the sale of properties recovered from one Abayomi, knowing the funds originated from unlawful activity, in violation of the Money Laundering (Prevention and Prohibition) Act.

Additionally, between October and December 2024, Jesam and AAS were alleged to have converted criminal proceeds. In 2022, they reportedly induced one Ladi Musa Audu to deposit $844,416.36 USDT under false assurances that the investment was safe and refundable.

Background

An investigation by SaharaReporters had revealed how Nigerian police authorities allegedly shielded Michael from prosecution despite mounting evidence of widespread fraud.

Before the EFCC filed charges against him, Michael reportedly benefited from protection by certain senior police officers. Sources told SaharaReporters that his arrest in February 2025, conducted alongside the Nigeria Immigration Service for fraud and financial exploitation, came only after significant delays.

Investigations also indicated close ties between Michael and former Special Investigation Unit (SIU) head, Effiong Asuquo, with some officers reportedly dismissing evidence of wrongdoing.

Michael is accused of defrauding around 56,000 investors and facilitating over 590,000 illicit transactions through his Ponzi-style platform, Afriq Arbitrage System. SaharaReporters traced approximately $1.6 billion to Michael’s wallets from thousands of subscribers. One source said some police officers reportedly referred to him as “Odogwu” and viewed him as a philanthropist, highlighting his influence within the force.

Alleged Fraud in the U.S.

Michael is also reported to have defrauded investors in the United States. Documents obtained by SaharaReporters show that his California-based cryptocurrency firm, Cryptos OTC Trading Platform Limited (COTP), ceased honoring withdrawal requests in May 2022, citing technical issues before eventually shutting down.

The California Department of Financial Protection and Innovation determined that COTP violated the state’s Corporations Code (sections 25110 and 25401), describing the platform as a Ponzi scheme. According to regulators, COTP promised daily returns of about 3% to investors, offered a referral program that resembled a pyramid scheme, and misused investor funds to pay earlier participants. Investors have reportedly never recovered their principal or promised returns.

Wielding Influence from Prison

SaharaReporters also reported in September 2025 that Michael continued to exercise influence while in detention.

Leaked audio calls suggest he allegedly bribed police officials to detain his former lawyer, Obeten Okoi, who was accused of falsifying documents in a disputed ₦68 million property transaction.

Okoi has denied the allegations, a position corroborated by Michael’s brother, Donatuse Akpanna.

Michael reportedly suspected Okoi of leaking information that contributed to his arrest.