EFCC arraigns Mompha’s associate, three firms over alleged N206 million fraud in Lagos

The Economic and Financial Crimes Commission (EFCC) on Tuesday arraigned a businessman, Sarumi Samusudeen Babafemi, alongside three companies linked to him, over an alleged N206 million fraud before the Special Offences Court sitting in Ikeja, Lagos.

Mr Babafemi was docked before Justice Rahman Oshodi by the Lagos Zonal Directorate 1 of the anti-graft agency on a five-count charge bordering on conspiracy, concealment, and transfer of proceeds of crime.

Also arraigned are 606 Autos Limited, 606 Music Limited, and Splash Off Entertainment Limited.

According to the EFCC, the offences are contrary to Section 332(1) of the Criminal Law of Lagos State, 2011, and punishable under Section 332(3) of the same law.

Allegations

In one of the charges, the prosecution alleged that Mr Babafemi, while serving as Managing Director and Chief Executive Officer of the three companies, conspired with Ismail Mustapha, popularly known as Mompha, who is currently at large, as well as Ridwan Momodu Allison, also known as Osama, and one Richard Ugbah.The alleged conspiracy was said to have occurred between 2013 and 2018 in Lagos.The EFCC claimed that the defendants used the companies to conceal the origin of illicit funds and subsequently transferred N37.6 million to one Omojadesola Shittu Allison, knowing, or having reasonable grounds to know, that the funds were proceeds of unlawful activities.In another count, the anti-graft agency alleged that between 2015 and 2018, Mr Babafemi used the companies’ bank accounts to conceal the source of funds before transferring N93 million to one Olanrewaju Ibrahim Oriyomi, allegedly aware that the funds were proceeds of crime.

Plea and bail

Mr Babafemi pleaded not guilty to all the charges when they were read to him in court.Following the plea, the prosecution counsel, Ayanfe Ogunsina, asked the court to fix a date for the commencement of trial and requested that the defendant be remanded in a correctional facility.However, defence counsel, Kunle Adegoke, a Senior Advocate of Nigeria, told the court that he had only received the charge a day earlier and had worked overnight to prepare a bail application, which was already before the court.Mr Adegoke urged the court to release the defendant to him, assuring the judge that he would produce Mr Babafemi in court on the next adjourned date.Justice Oshodi granted the request and ordered that the defendant be released to his counsel upon the filing of an affidavit of undertaking to ensure his appearance at subsequent proceedings.The case was adjourned until March 24, 2026, for the commencement of trial.