The Economic and Financial Crimes Commission (EFCC), on Tuesday, arraigned Sarumi Babafemi over an alleged N206 million fraud, linking him to Ismail Mustapha, also known as Mompha, a high-profile businessman currently facing separate money laundering charges.
Mr Babafemi appeared before trial judge Rahman Oshodi of the Special Offences Court in Ikeja, Lagos, on Tuesday, alongside his companies – 606 Autos Limited, 606 Music Limited, and Splash Off Entertainment Limited. Together, the defendants face five counts of conspiracy, concealment, and transfer of proceeds of crime.
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The charges, filed under Section 332(1) of the Criminal Law of Lagos State, 2011, and punishable under Section 332(3) of the same law, alleged that Mr Babafemi, while serving as Managing Director and CEO of the three firms, conspired with Mompha, Ridwan Momodu Allison (a.k.a. Osama), both currently at large, and Richard Ugbah between 2013 and 2018, to conceal the origin of illicit funds.
The EFCC further alleged that Mr Babafemi transferred N37.6 million to Omojadesola Allison, knowing or having reasonable grounds to know that the funds were proceeds of unlawful activity.
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Between 2015 and 2018, he is also accused of transferring N93 million to Olanrewaju Oriyomi through the companies’ accounts while aware, or reasonably expected to be aware, that the funds were criminal proceeds.
Mr Babafemi pleaded not guilty to all charges.
Following the plea, EFCC lawyer Ayanfe Ogunsina asked the court to fix a trial date and remand the defendant in a correctional facility.
In response, Mr Babafemi’s lawyer, Kunle Adegoke, who is a Senior Advocate of Nigeria (SAN), told the court he had only received the charges the previous day and had worked overnight to prepare a bail application, which was already before the court.
He urged the judge to release his client, assuring that Mr Babafemi would appear on the next hearing date.
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Mr Oshodi granted the application, ordering that Mr Babafemi be released to his lawyer upon the filing of an affidavit of undertaking to ensure his appearance in court.
The case was adjourned until 24 March, for the commencement of trial.
The arraignment comes amid ongoing legal battles involving Mompha, who has faced a separate EFCC prosecution over alleged money laundering and other financial crimes.
In late 2025, a court dismissed his no-case submission in a nearly N6 billion laundering suit and ordered him to enter his defence, drawing significant public attention.
Mompha has previously accused the EFCC of intimidation and blackmail in response to the investigations.
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