SEC has blacklisted Famzhi CEO, Mariam Suleiman who has been jailed for five (5) years for N2 billion fraud in Nigeria.
NewsOnline Nigeria reported that the Federal High Court in Abuja on Tuesday, June 11 2024, convicted and sentenced the Chairman and Managing Director of Famzhi Interbiz Ltd, Mariam Suleiman, to a five-year jail term for fraudulently diverting investors’ money to N2 billion.
This Nigeria news platform understands that Justice Inyang Ekwo agreed with the federal government that the defendant and her firm together with their other staff on or between the year 2017 and 2019 committed a felony by luring and offering an unregistered collective investment scheme valued over N2 billion to the unsuspecting public.
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Recall that three years ago, how the Securities and Exchange Commission (SEC) declared the activities of Famzhi Interbiz Limited illegal, alleging neither the company nor their products were registered or regulated by the Commission.
Meanwhile, the trial court’s verdict is not final as the convict has the constitutional right to appeal the judgement to the Supreme Court.
FG’s Case
In the charge in suit number: FHC/ABJ/CR/155/2021, counsel for the Attorney-General of the federation, Moshood Adeyemi said that after interrogation by the police, the defendant confirmed she was collecting money from members of the public and told them she is into farming, poultry farming and water business.
She was accused of soliciting funds while assuring investors that she was processing the license for her microfinance bank.
The prosecution disclosed that after a while, about 2049 investors reported the firm to security agencies alleging the firm refused to refund their money or give them interest as agreed.
The Prosecution called six witnesses to prove their case.
The prosecution had presented a SEC official, Mohammed Nakwada, who testified that surveillance was carried out by the SEC concerning the business activities of Famzhi.
According to his testimony, “The 2nd defendant (Famzhi) is not registered and not licensed by the SEC to carry out any capital market operations.”
The witness had said he understood the nature of Famzhi’s business was to solicit funds from the Nigerian public and to invest for them to make returns.
The prosecution lawyer urged the court to convict the defendants as its investigation corroborated by the accounts of investors and SEC officials, showed the defendants defrauded Nigerians.
Firm’s Defense
However, the defendants had pleaded not guilty upon arraignment on December 8, 2021.
In their defense, Barrister Doo Adikpo submitted that from the totality of the evidence before the court, the prosecution woefully failed to prove the charges against the defendants “beyond a reasonable doubt.”
The lawyer added that it was evident from the statement of Suleiman that officers of SEC in the process of registration visited her office for inspection, adding the prosecution cannot conclude that her statement does not qualify as evidence.
The lawyer urged the court to hold that the prosecution failed to prove the essential ingredients of the offence in each of the two-count charges while discharging and acquitting the defendants.
What the judge said
Justice Ekwo held that the first Defendant (Mariam ) admitted that while awaiting approval from the SEC, she continued collecting funds from the investing public and continued operation.
He observed from the records that thousands of people invested with the defendants’ farming, real estate and water factory, even before the firm approached the SEC to register the scheme.
Ekwo described the acts of the defendants as illegal.
” Therefore, the commencement of the business without the requisite license offends the provisions of ISA, 2017.
“Ignorance of the law is not a defence and the Court is urged to take a critical look at the exhibits tendered which are sufficient to ground a conviction,” the judge held.
The judge said the 1st and 2nd defendants conspired among themselves together with their other staff to do an illegal act by luring investors.
Justice Ekwo, subsequently sentenced Suleiman to three years imprisonment in count one and two years jail term in count two, adding that the five-year jail term would run concurrently, that is, for 3 years.
The judge also ordered the company to be wound up, directing that all its assets be sold, and the proceeds used to compensate the victims of the crime.
