EFCC Arraigns Mompha’s Associate, Companies Over Alleged N206m Fraud

The Economic and Financial Crimes Commission (EFCC), Lagos Zonal Directorate 1, on Tuesday, January 20, 2026, arraigned Sarumi Samusudeen Babafemi before Justice Rahman Oshodi of the Special Offences Court sitting in Ikeja, Lagos, over an alleged N206 million fraud.
Babafemi was arraigned alongside three companies—606 Autos Limited, 606 Music Limited, and Splash Off Entertainment Limited—on a five-count charge bordering on conspiracy, concealment, and transfer of proceeds of crime amounting to N206,000,000.
The offences are said to be contrary to Section 332(1) of the Criminal Law of Lagos State, 2011, and punishable under Section 332(3) of the same law.
According to the EFCC, Babafemi, while serving as the Managing Director and Chief Executive Officer of the companies, allegedly conspired with Ismail Mustapha (also known as Mompha), Ridwan Momodu Allison (also known as Osama), both currently at large, and one Richard Ugbah, to launder illicit funds.
One of the charges states that between 2013 and 2018, the defendant used his companies to conceal the origin of funds and transferred N37.6 million to Omojadesola Shittu Allison, knowing or having reasonable grounds to know that the funds were proceeds of unlawful activity.
Another count alleges that between 2015 and 2018, Babafemi used the companies’ accounts to conceal and transfer N93 million to one Olanrewaju Ibrahim Oriyomi, also allegedly proceeds of an unlawful act.
Babafemi pleaded not guilty to all the charges when they were read to him.
Following his plea, prosecution counsel, Ayanfe Ogunsina, requested a trial date and asked the court to remand the defendant in a correctional facility.
However, defence counsel, Kunle Adegoke, SAN, 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 in process. He urged the court to release the defendant to him, assuring that he would be produced 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 produce him in court.
The case was adjourned to March 24, 2026, for the commencement of trial.