Ethiopian Federal Police said it has completed an investigation into the founders of Fintech Investment plc accused of defrauding more than 1,200 citizens of 1.7 billion birr, in one of the country’s largest alleged financial scams.
Police said suspects Daniel Yohannes and Girmay Gebremichael, founders and owners of the Fintech Investment Private Company, have been referred to prosecutors to face charges spanning 19 criminal counts, including fraud and cross-border financial crimes.
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The case, initially handled by the Addis Ababa Police, was later transferred to federal authorities due to its complexity and international dimensions. Daniel Yohannes is currently in custody, while Girmay Gebremichael remains at large and is under active monitoring, police said.
Authorities allege the pair orchestrated a scheme promising customers ownership of vehicles within 90 days in exchange for a 50% down payment of 950,000 birr, with the balance to be financed through interest-free bank loans over five years. Victims were also charged additional fees, bringing total payments to about 1.365 million birr per person.
Investigators found the suspects imported 148 vehicles through Djibouti, distributing 100 while secretly selling the remaining 48. They also allegedly misled customers by claiming that hundreds more vehicles had already entered Ethiopia or were awaiting shipment at the Port of Djibouti.
Police said the suspects falsely claimed to have a partnership with the Chinese BYD Company, despite having no contractual agreement. Vehicles showcased to customers were reportedly sourced from various locations, including Meskel Square, to create the impression of legitimacy.
Further findings revealed the suspects established a company in Djibouti named “Alfatizo,” through which they acquired vehicles with a 10% down payment and resold them without settling the remaining balance.
The investigation also implicated several public figures accused of promoting the scheme through misleading endorsements. Those detained include Solomon Bogale, Serawit Fikre, Daniel Tegen, Abraham Gizaw, Yegerem Dejene, Mansur Jamal and Khalid Nasser. Police allege they used their influence to promote the company and received high-value vehicles, including BYD Song Plus models worth about 8 million birr each.
A court has granted investigators additional time until March 30 to proceed with the case against the promoters.
The Ethiopian Federal Police said it will continue expanding investigations into suspected fraud, money laundering and related cross-border crimes, adding that it is working closely with the Ministry of Justice Ethiopia and community policing units.
