Mariam Suleiman, chairman and managing director of Famzhi Interbiz Ltd, has been sentenced to five years in prison for her role in a fraudulent investment scheme that defrauded investors of over N2 billion.
The ruling was handed down by the Federal High Court in Abuja on June 11, 2024.
The court found Suleiman guilty of operating an unregistered investment scheme between 2017 and 2019, luring unsuspecting investors with talks of high returns.
Despite knowing that her company lacked the necessary regulatory approvals, Suleiman continued to solicit funds, claiming that Famzhi was engaged in legitimate businesses such as farming and water production.
The prosecution, led by Moshood Adeyemi from the Attorney-General’s office, presented clear evidence including testimonies from six witnesses and a detailed investigation by the Securities and Exchange Commission (SEC).
Mohammed Nakwada, a SEC official, testified that Famzhi was not licensed to conduct capital market operations, confirming the fraudulent nature of the investment scheme.
Investors began reporting issues in 2019 when Famzhi failed to return their principal investments or promised interest. The SEC had already flagged Famzhi’s activities as illegal in 2021, warning the public that neither the company nor its schemes were registered.
Suleiman’s defense, led by Barrister Doo Adikpo, argued that the prosecution did not meet the burden of proof. They contended that the SEC had inspected Famzhi’s operations during the registration process, implying some level of regulatory oversight.
However, Justice Inyang Ekwo dismissed these arguments, noting that Suleiman’s own admission of continued fundraising without SEC approval was sufficient for conviction.
The court’s decision went beyond sentencing Suleiman to a five-year jail term to ordering the dissolution of Famzhi Interbiz Ltd. The company’s assets will be liquidated, and the proceeds will be used to compensate the defrauded investors.
This case, which gives Mariam Suleiman the right to appeal, is a cautionary tale for other companies operating in the financial sector without proper authorization.
Author
