A senior lawyer with the Economic and Financial Crimes Commission (EFCC), Geraldine Ofulue, has withdrawn from prosecuting the high-profile fraud case involving Jesam Michael, the Chief Executive Officer of Afriq Arbitrage System (AAS) Limited, amid allegations of internal pressure to weaken the case, According to Sahara Reporters.
Ofulue, who has over 13 years of post-call legal experience, reportedly stepped aside to protect her professional integrity after facing what sources described as intense pressure from within the EFCC hierarchy to compromise the prosecution. The development was first brought to light by sources familiar with the matter.
Jesam Michael, an alleged international fraudster, was recently granted bail of ₦300 million by a Federal High Court in Abuja, with strict conditions including the provision of two sureties. Pending the fulfilment of those conditions, he remains in custody at the Kuje Correctional Centre.
Sources disclosed that a new prosecutor has since been assigned to the case. However, there are growing claims within the commission that the replacement prosecutor may have been compromised financially.
“She stepped down because she didn’t want her name dragged into anything questionable. From what we are hearing, the EFCC itself has been compromised, and the new prosecutor brought in has allegedly been paid,” a source within the commission alleged.
In June 2025, the Federal High Court in Abuja ordered Jesam Michael to be remanded in Kuje Prison following his arraignment on a seven-count charge bordering on investment fraud, money laundering, and advance fee fraud.
Justice Obiora Egwuatu, who presided over the case, initially denied Jesam’s bail application, citing the seriousness of the allegations, the weight of evidence presented by the EFCC, and ongoing investigations that were still uncovering new victims.
The judge noted that over 50,000 investors were believed to have been affected by the alleged fraudulent scheme, raising concerns about both public interest and the defendant’s safety. He subsequently ordered an accelerated hearing and directed that Jesam be transferred from EFCC custody to the correctional facility.
According to court documents in suit number FHC/ABJ/CR/134/2025, the EFCC accused Jesam and his company of illegally soliciting funds from the public between September 2022 and June 2023 without the required licences, in violation of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The commission alleged that AAS operated unauthorised cryptocurrency investment services and laundered ₦590 million believed to be proceeds of crime. Jesam was also accused of inducing investors to deposit large sums of money, including over $844,000 in USDT, under false assurances of safety and guaranteed returns.
Investigations have also raised concerns about alleged protection Jesam enjoyed from elements within the Nigeria Police Force before the EFCC stepped in. Victims reportedly filed multiple complaints that were ignored, allegedly due to Jesam’s close ties with senior police officers.
Sources claimed that he was regarded as a benefactor by some officers and was even provided with police personnel to intimidate individuals who accused him of fraud. These allegations eventually prompted the EFCC to take over the case.
There are also claims that similar attempts to interfere with the prosecution may now be occurring within the EFCC itself.
Jesam Michael has also been linked to a cryptocurrency fraud case in the United States. In 2022, authorities in California ordered the shutdown of Cryptos OTC Trading Platform Limited, a company associated with him, after it was found to be operating an unregistered investment scheme.
The California Department of Financial Protection and Innovation described the platform as a Ponzi-style operation, accusing it of misleading investors, operating without authorisation, and using new investor funds to pay earlier participants. Thousands of investors reportedly lost access to their funds after the platform abruptly shut down.
Despite being in custody, reports suggest that Jesam continues to wield influence through alleged connections with senior security officials. Leaked audio recordings reportedly captured him boasting about bribing law enforcement officers to detain a former lawyer over a property dispute.
That lawyer has denied the allegations, while members of Jesam’s family have described the dispute as a personal fallout linked to suspicions of leaked information that eventually led to Jesam’s arrest.
As the case continues, concerns are mounting over the integrity of the prosecution and whether justice will ultimately be served for thousands of alleged victims, both in Nigeria and abroad.