Gbenga Akibo, the Chief Executive Officer of Quadrant Network Services Limited, a Lagos-based binary options trading company, is now in custody for defrauding several investors of about N235m fraud.
Binary options trading is a high-risk, unpredictable investment option in which the investor gets a payoff at a fixed amount or nothing at all.
The United States’ Federal Bureau of Intelligence estimates that scammers steal $10bn annually worldwide.
Akibo was arrested following petitions to the Assistant Inspector-General of Police, Zone 2 Command, Onikan, by some of the complainants.
The complainants, according to the police, include Akin Fadeyi, with N7.5m investment; Paulina Ikobo, N2,872,000; Joseph Ikobo, N500,000; Bridget Gold, N75m; Nkemjika Onuigbo, N4m; Chinedu Onuigbo, N2m; Peace Onyajizu, N4m; Patrick Ngwoba, N12,348,000; Benedict Ikenna, N9m; Nkechi Nduka, N3,550,000; Stella Akabudo, N15,030,000; Oluwaseun Awofodu, N1,065,000; Olumide Olawale, N700,000; Ayo Emmanuel, N200,000.
Others are Yemisi Olani, N700,000; Oladayo Olatunji, N200,000; Oluwatoyin Idowu, N300,000; Opeyemi Olawale, N100,000; Taiwo Augustine, N150,000; Joseph Dada, N150,000; Elizabeth Remi, N300,000; Samuel Faloye, N200,000; Segun Fasihu, N400,000; Oguntola Morenikeji, N100,000; and Tomisin Oladimeji, N410,000.
Police also accused Akibo of defrauding one Lekan Oladimeji of N3m; Esther Oluwabunmi, N3,550,000; Adeola Ayodabo, N2,350,000; Nze Onyoka, N31,160,000; Godwin Idoko, N23m; Orjiakor Chukwuemeka, N2m; Divine Oghenechoja, N500,000; Ope Mike, N10m; Kenny Odugbemi, N2.9m; Shabi Ibikunle, N3.7m; Salaudeen Taofeek, N5m; Kelechi Nwakwo, N3,250,000 and Idayat Adebukola, N4.5m.
Two of the complainants, Joseph Ikobo and Paulina Ikobo, had in June 2018 petitioned the AIG that, having invested a combined sum of N3,372,000 in the company, “it defaulted in the payment of the investment capital and returns.”
In another petition dated April 3, 2018, another affected investor, Nkemjika Onuigbo, alleged that Akibo “unduly influenced” him to invest in binary options trading and assured him of a “fictitious interests of 40 per cent on investment which never materialised.”
“In that regard, our client registered and three accounts (Nkemjika Onuigbo, Chinedu Onuigbo and Peace Onyajizu) in respect of the said binary options trading investment were opened for him and the sum of N10,000,000 was paid on September 25, 2017,” the petition added.
The 40 per cent interest (N4m), according to an agreement Nkemijka allegedly reached with the company, was to materialise after 40 days of investment.
The petition read in part, “After all pleadings and persuasions, our client succumbed and the said investment was rolled over and part of the would be 40 per cent interest of the sum of N4,000,000 was used to open another account in the name of Michael Sunday Onuigbo and the sum of N3,200,000 was invested in the said account and the 40 per cent interest on the said sum invested in the new account was N1,280,000.
“To our client’s greatest surprise, before the accounts rolled over could elapse within the said 40 days, when it was obvious that Mr Gbenga Akibo would not pay either the principal sum or the interest, a meeting was summoned on January 24, 2018 by Mr Gbenga Akibo and he informed our client that he had landed property at Ibeju-Lekki and that he intended to convert the principal and the interest to landed property.
“He stated that each plot cost N3,000,000 and that he would give our client four plots of land which amounted to the sum of N12,000,000, and that the balance of N2,000,000 would be given to our client in March 2018.”
Akibo reportedly closed down the firm subsequently and vacated his residence, making it difficult for Nkemijka to know his whereabouts until he was arrested by the police.
“Our client is now living from hand to mouth since he was swindled by Mr Gbenga Akibo out of all his life savings and other people’s money in his possession and they are now threatening him.
“We therefore urge you, sir to use your good offices to investigate this matter with due diligence and make Mr Gbenga Akibo pay back our client’s sum which he collected by false pretences, inducement, undue influence, illegally and diverted into his personal use,” the petition added.
Another investor, Benedict Ikenna, who reportedly lost N9m to the firm, said he was approached by an official of the company to invest in its business.
Ikenna, who also petitioned the AIG, through his lawyer, Onuoha Franklin, said he initially refused to do business with the firm because of the “volatility of the stock exchange market around the world.”
He said the official came back few days later and informed him that the managing director of Quadrant Network Services wanted to see him.
“On getting to the office premises, our client was introduced to a lady who claimed to be the personal assistant to the managing director. The PA claimed that the MD had to quickly leave the office for a business engagement.
“The PA went further to explain to our client the nature of their business. She produced a document showing that the company was in the process of obtaining permission and authority of the Central Bank of Nigeria and Nigerian Stock Exchange to collect money from people for investment purposes,” the petition stated.
It was said that when Ikenna requested to see the document, the PA refused on the grounds that the document would be unveiled in a ceremony that would be attended by top political office holders, including representatives of the CBN and NSE.
It added, “Thereafter, our client invested N9,000,000 with a maturity date of February 6, 2018. However, before the due date, our client eventually got the supposed direct contact of the MD. Our client put a call across to him and scheduled a meeting with him. The essence of the meeting was to extract tacit promise from the MD that our client’s money will be paid as and when due.
“During the meeting, the MD promised that our client will receive his money on the due date, including the interest accruable on the money. The MD, Mr Gbenga Akibo, even asked our client to encourage his rich friends to invest and that some percentage of whatever they invest would accrue to our client.”
Ikenna became worried when Akibo’s mobile phone line was unreachable after the due date
When he revisited the firm’s office on Sule Abuka Crescent, Opebi Road, it was said to have been deserted.
But in some of his statements to the police, Akibo, who hails from Abeokuta, Ogun State, said he did not force clients to invest in binary options trading, adding that one of them had received returns on her investment.
He said, “I know Mrs Bridget Gold. She is an investor in my company where I trade binary options trading for my clients. She has been an investor since 2017 and has received returns on her investment more than once. I don’t know the exact sum of her investment but her account officer confirmed that she had received returns. I have been in touch with Mrs Gold and we have all been trying to solve the issue on the ground together.
“The marketers introduce the binary options trading to the clients and usually ask them to read up more about it online before making any decision. To the best of my knowledge, no client is ever forced or put under duress to invest. They are to pay into the company’s account and wait for notifications from the company on the commencement and maturity date of their investment.
“I am not aware that some of my marketers do collect money and do not remit it to the company. The human resources manager of the company should have information of all marketers.”
Akibo was consequently brought before a Tinubu Magistrates’ Court on 39 counts bordering on stealing.
A police prosecutor, ASP Ben Ekundayo, said the offence contravened sections 289 (9) and 411 of the Criminal Law of Lagos State of Nigeria, 2015.
He pleaded not guilty, but the, presiding Chief Magistrate, Mrs Olumide Fusika, remanded the defendant in prison custody, pending advice from the Directorate of Public Prosecutions in the state.