Lagos Court convicts peer-to-peer crypto trader for fraud

The Federal High Court in Ikoyi, Lagos, led by Justice Nicholas Oweibo, rendered a guilty verdict on October 6, 2023, for Lawrence Success Karinate, a crypto trader operating in a peer-to-peer capacity, on charges related to computer-related fraud.

Karinate was prosecuted by the Lagos Zonal Command of the Economic and Financial Crimes Commission (EFCC) on a single count of cybercrimes, violating Section 22(2)(b) of the Cybercrimes (Prohibition etc.) Act, 2015.

The charge specified: “Success Lawrence Karinate, at some point in 2023, within this court’s jurisdiction, misrepresented himself on social media platforms as ‘Jessie Randall,’ a female fashion influencer, with fraudulent intent to deceive unsuspecting members of the public and gain an advantage for personal gain. This action constitutes an offense, contravening and punishable under Section 22(2)(b) of the Cybercrimes (Prohibition etc.) Act, 2015.”

Karinate pleaded “guilty” to the charge brought against him. Following his admission of guilt, the EFCC’s legal representative, Usman Abubakar Ahmad, presented a witness, Taiwo Owolabi, an EFCC operative, to present the case’s facts. Owolabi stated that the defendant, along with others, was apprehended in the Lekki area of Lagos State on May 26, 2023. Upon his arrest, his iPhone and HP computer were analyzed, revealing fraudulent documents. Karinate made restitution in the amount of N100,000 (One Hundred Thousand Naira). During further interrogation, he admitted involvement in a pig butchering scam, benefiting $2,000 (Two Thousand United States Dollars) from it. This scam involves deceiving victims into digital relationships, gaining trust, and subsequently persuading them to invest in cryptocurrency platforms.

Consequently, Usman sought to present the defendant’s extra-judicial statement, along with fraudulent documents printed from his iPhone and laptop computer, as well as the management cheque issued by him, as evidence. Justice Oweibo admitted these items as exhibits A, B, C, C1, D, and E, respectively, and convicted Karinate as charged.

In his allocutus, Karinate expressed remorse for his involvement in criminal activities and assured the court of his commitment to abstain from internet fraud in the future. His counsel, Chikezie Kingsley, appealed for leniency, emphasizing that the defendant was a first-time offender.

Subsequently, Justice Oweibo imposed a fine of N200,000 (Two Hundred Thousand Naira) in his judgment.