Ethiopian Police Charge Fintech Founders with £340 Million Fraud Affecting Over 1,200 Victims
Addis Ababa, 29 March 2026
Ethiopian Federal Police have filed criminal charges against Fintech Investment founders for defrauding over 1,200 citizens of 1.7 billion birr through a fake car import scheme. The suspects promised vehicle ownership within 90 days for a 950,000 birr down payment, but investigators discovered they only imported 148 cars whilst secretly selling 48 and falsely claiming partnerships with Chinese manufacturer BYD.
Criminal Charges Filed Against Company Founders
Ethiopian Federal Police have completed their investigation and filed 19 criminal charges against Daniel Yohannes and Girmay Gebremichael, the founders and owners of Fintech Investment plc [1]. The charges include fraud, money laundering, and transnational crimes following an investigation that revealed damages exceeding 1.7 billion Ethiopian birr [1]. Daniel Yohannes is currently in custody, whilst Girmay Gebremichael remains at large under active police monitoring [1]. The case was initially handled by Addis Ababa Police before being transferred to federal authorities due to its complexity and international dimensions [1].
Elaborate Vehicle Import Deception Scheme
The suspects orchestrated a sophisticated fraud scheme by promising customers vehicle ownership within 90 days in exchange for a 50% down payment of 950,000 birr, with the remaining balance allegedly to be financed through interest-free bank loans over five years [1]. Victims were also charged additional fees for government taxes and electric car chargers, bringing total payments to approximately 1.365 million birr per person [1]. Police investigations revealed that the suspects imported only 148 vehicles through Djibouti, distributing 100 to customers whilst secretly selling the remaining 48 [1]. The suspects falsely claimed to have imported 350 cars and misled customers by stating that 400 additional vehicles were awaiting shipment at the Port of Djibouti [1].
False Corporate Partnerships and International Operations
A critical element of the deception involved the suspects’ false claims of a partnership with Chinese electric vehicle manufacturer BYD, despite having no contractual agreement with the company [1]. To create an impression of legitimacy, vehicles were reportedly gathered from various locations around Meskel Square and showcased to potential customers [1]. The investigation uncovered that the suspects established a company in Djibouti named ‘Alfatizo’, through which they acquired 336 vehicles with only a 10% down payment [1]. They subsequently resold 188 of these vehicles in Djibouti without importing them to Ethiopia, whilst failing to settle the remaining 90% balance owed to the Chinese supplier [1].
Celebrity Endorsements and Media Manipulation
The fraud scheme involved several public figures who allegedly promoted the company through misleading endorsements. Police have detained Solomon Bogale, Serawit Fikre, Daniel Tegen, Abraham Gizaw, Yegerem Dejene, Mansur Jamal, and Khalid Nasser [1]. These celebrities and advertising professionals allegedly used their influence to promote the scheme and received high-value BYD Song Plus vehicles worth approximately 8 million birr each [1]. Victims have expressed anger at the role of media outlets in facilitating the fraud, stating that their trust in established media platforms and celebrity endorsements led them to believe the scheme was legitimate [2]. The victims explained that repeated promotional content on Facebook, TikTok, and Telegram pages created compelling narratives that made them accept the information as factual [2].
Victims’ Perspectives on Media Responsibility
Fraud victims have highlighted the significant role that media outlets played in legitimising the scheme through their coverage and advertisements [2]. They argue that some media institutions accepted payments to produce ‘news-like advertisements’, whilst others failed to conduct adequate verification before publishing reports, leading to widespread public deception [2]. The victims noted their trust in established media platforms, believing that ‘if a page I know reported it, it can’t be false; if a government-recognised media reported it, it can’t be fake’ [2]. They have criticised media outlets that previously promoted the company as a major investment opportunity with ‘cars for 950,000 birr’ but are now reporting the arrests as breaking news, describing this as a ‘washing our hands’ approach [2]. One individual, Gezahegn Teresa, has been recognised for using personal social media accounts to warn the community about the scheme, stating ‘there is no such cheap thing; they are defrauding people’ and advocating for government action [2]. A court has granted investigators additional time until 30 March 2026 to proceed with the case against the promoters [1].