The Economic and Financial Crimes Commission (EFCC) has re-arraigned two executives of the Covenant Fadama Multi-purpose Cooperative Society, Secretary Okewole Dayo and Chairman Katung Jonas, over an alleged fraud involving N178,885,000. The arraignment took place on Thursday before Justice Sharon T. Ishaya at the Federal High Court in Jos, Plateau State.
The EFCC filed a 23-count charge against the defendants, accusing them of conspiracy, obtaining money under false pretenses, and laundering funds through various bank accounts. The charges stemmed from fresh investigations that uncovered a scheme designed to mislead the public into making fraudulent investments.
EFCC Alleges Cooperative Was a Front for Fraud
According to the anti-graft agency, the cooperative society was created as a cover to lure unsuspecting investors with false promises of high returns. The commission claimed that once investors deposited their money, the accused persons diverted the funds into multiple bank accounts and withdrew them using proxies.
EFCC investigators also alleged that the defendants used some of the stolen funds to acquire real estate in Jos and Kaduna, further confirming suspicions of a deliberate scheme to defraud.
One of the charges accused the pair of transferring N50 million from the cooperative’s First Bank account to an account at Dadin Kowa Microfinance Bank—money believed to be proceeds of criminal activity. In another count, the commission alleged that they fraudulently collected N10 million from Reke Vida Ltd by promising a 10% monthly return on investment, a claim the EFCC said they knew to be false.
Defendants Plead Not Guilty
During Thursday’s hearing, both Dayo and Jonas pleaded not guilty to all charges brought against them. In response, prosecution counsel Ibrahim Buba informed the court of the EFCC’s readiness to commence the trial, stating that a date had already been scheduled for the following day.
However, the proceedings faced immediate setbacks when the defendants’ legal team raised concerns. J.J. Achi, counsel to the second defendant, notified the court of a personal emergency that would prevent him from attending. Meanwhile, C.I. Nwogbo, another defense lawyer, said he had recently joined the case and had yet to receive certified true copies of the documents he requested from the prosecution in April. He also highlighted logistical difficulties in meeting with his client, who does not live in Jos.
Prosecution to Adjust Witness List
Justice Ishaya asked the EFCC how many witnesses it intended to call. The prosecution responded that while the initial list included 18 witnesses, some had become unreachable and two were confirmed dead. Consequently, the EFCC may introduce new witnesses to replace those who are unavailable.
After listening to all parties, Justice Ishaya adjourned the matter to July 22 and 23, 2025, to allow both sides adequate time to prepare.
A Familiar Pattern in Nigeria’s Financial Crimes
This case adds to a growing list of fraudulent investment schemes that have targeted Nigerians through promises of unrealistic financial returns. The EFCC has consistently warned the public against falling prey to such offers, particularly those that guarantee unusually high profits, such as a 10% monthly dividend.
Legal experts have noted that the charges fall under the Money Laundering (Prohibition) Act of 2012 and the Advance Fee Fraud and Other Fraud Related Offences Act of 2006. These laws impose heavy penalties, including long-term imprisonment, asset forfeiture, and no option of a fine for guilty parties.
Implications for Investors and the Fight Against Fraud
As the trial resumes in July, the case could set a precedent in Nigeria’s legal battle against financial crimes disguised as cooperative investments. For many victims, the outcome may offer a sense of justice and closure, particularly if the court orders the recovery of diverted assets.
The EFCC continues to urge Nigerians to conduct thorough background checks before investing in any scheme or cooperative. This case, much like previous ones, reinforces the importance of financial vigilance and the need for stronger regulatory oversight in the cooperative and investment sectors.
