BREAKING: EFCC Secures Final Forfeiture of 431 Phones Linked To Chinese Cyber-Fraudsters

BY MICHAEL AKINOLA

Justice Deinde Dipeolu of the Federal High Court sitting in Lagos yesterday ordered the final forfeiture to the Federal Government of Nigeria of 431 mobile phones allegedly linked to convicted Chinese cyber-fraud operators.

The judge granted the application on September 29, 2026, after hearing counsel to the Economic and Financial Crimes Commission (EFCC), Hanatu Kofarnaisa, who represented the applicant.

The order followed an application by the EFCC pursuant to Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006 and Section 44(2)(b) of the 1999 Constitution, seeking the final forfeiture of the mobile devices allegedly acquired with proceeds of unlawful activities.

The suit, marked FHC/LAG/MISC/990/2026, was brought as an action in rem.

In the affidavit filed in support of the application, an EFCC investigating officer, Christopher Augustine, alleged that the 431 mobile phones were linked to an elaborate cyber-fraud operation allegedly involving Chinese nationals and Nigerian youths in Lagos.

The Commission alleged that some Chinese nationals had conspired with other foreign nationals from China, Kyrgyzstan, the Philippines and Pakistan to establish a facility known as “HK” in the Victoria Island area of Lagos State, where internet fraud activities were allegedly carried out.

According to the EFCC, the operation reportedly involved no fewer than 500 laptops, 400 cell phones and various local telecommunications cards, allegedly used to conduct romance and dating scams as well as cryptocurrency and investment fraud.

The Commission further alleged that several Nigerian youths were recruited online and brought into the premises, where they allegedly lived with the foreign nationals and were trained in various fraudulent activities.

The EFCC stated that a sting operation conducted on December 10, 2024 led to the arrest of more than 700 individuals, comprising about 500 Nigerians, 148 Chinese, 40 Filipinos, two persons identified in the affidavit as “Kharzartan” and one Pakistani national.

The Commission alleged that the premises in Victoria Island had been used to train foreign and Nigerian nationals to initiate romance and investment scams, while the identities of Nigerian accomplices were allegedly used to perpetuate the activities.

The EFCC further alleged that the suspects targeted victims through phishing and online communications, particularly Americans, Canadians, Mexicans and persons from several European countries.

According to the affidavit, a company, Genting International Company Limited (GICL), was incorporated in mid-2024 and was controlled by Huang Haoyu (Ken), a Chinese national, and other alleged foreign co-conspirators.

The Commission alleged that GICL had a workforce of about 200 Chinese nationals who operated as recruiters and supervisors of Nigerian youths.

The EFCC further alleged that the foreign nationals and Nigerian recruits were assigned WhatsApp accounts linked to foreign telephone numbers, particularly numbers from Germany and Italy, which they allegedly used to engage victims in romantic conversations and purported business and investment discussions.

The Commission said victims were allegedly encouraged to transact on an online investment shopping platform identified as “www.yooto.com”, with activation fees allegedly starting from $35.

The affidavit also alleged that the account of Huang received more than N3.4 billion, which the Commission described as part of the proceeds of the alleged unlawful activities.

The EFCC further alleged that Huang, through GICL, purchased mobile phones for Nigerian youths who were allegedly involved in the internet fraud operation.

According to the Commission, several mobile devices and gadgets were recovered from Huang and GICL and were allegedly used in the commission of internet fraud.

The EFCC stated that following its investigation, it filed a seven-count charge against the foreign nationals and GICL on March 7, 2025, alleging cyber terrorism, possession of fraudulent documents, failure to declare activities to the Special Control Unit Against Money Laundering (SCUML), illegal foreign exchange transactions and money laundering.

The Commission said Huang and GICL pleaded guilty to the seven counts, were convicted and sentenced by the court.

It was against this background, the EFCC stated, that it discovered an additional 431 mobile phones allegedly linked to the convicts and suspected to have been used in perpetrating the fraudulent activities.

The Commission subsequently approached the court on July 8, 2026, for an interim forfeiture order in respect of the phones.

The court granted the interim forfeiture order and directed the EFCC to publish the order in a national newspaper to enable any person interested in the property to appear before the court and show cause why the interim order should not be made final.

The EFCC stated that it complied with the directive by publishing the order in The Guardian newspaper of August 11, 2026.

Following the publication and the expiration of the period stipulated by the court, the Commission filed the present motion on notice seeking final forfeiture of the 431 phones.

In its written address, the EFCC submitted that Section 17 of the Advance Fee Fraud and Other Related Offences Act empowered the court to order the forfeiture of property reasonably suspected to be proceeds of unlawful activity.

The Commission argued that the forfeiture proceedings were non-conviction-based and were intended to prevent property reasonably suspected to be proceeds of crime from being dissipated.

It relied on Section 17(6) of the Act, which provides that an order of forfeiture under the section shall not be based on a conviction for an offence under the Act or any other law.

The EFCC also relied on judicial authorities, including Dame Patience Jonathan v. FRN and La-Wari Furniture & Baths Ltd v. FRN & Anor, in arguing that the constitutionality of the forfeiture provision had been settled by the appellate courts.

The Commission urged the court to hold that it had satisfied the statutory requirements for final forfeiture and grant the application in the interest of justice.

Justice Dipeolu, after hearing the application argued by Kofarnaisa on behalf of the EFCC, granted the application and ordered the final forfeiture of the 431 mobile phones to the Federal Government.

The proceedings were brought against the property itself under the action-in-rem procedure, with the EFCC seeking forfeiture of the devices rather than a fresh criminal conviction against their alleged users.

The final forfeiture order brings to an end the interim forfeiture process commenced by the Commission in July.