Ethiopian authorities have charged two fintech entrepreneurs with 19 counts of fraud after allegedly defrauding more than 1,200 victims out of 1.7 billion birr (approximately $30 million) in a vehicle purchase scheme that promised cars within 90 days but delivered on only a fraction of orders.
Daniel Yohannes and Girmay Gebremichael, founders of Fintech Investment plc, now face charges including fraud and cross-border financial crimes. Daniel Yohannes remains in custody while Girmay Gebremichael is at large under active monitoring, according to the Ethiopian Federal Police.
The case, which comes to a head with an investigation deadline of March 30, 2026, reveals a sophisticated operation that exploited Ethiopia's nascent digital finance sector and citizens' trust in celebrity endorsements.
According to police documents obtained by StockMarket Ethiopia, the founders promised customers vehicle ownership within 90 days for a 50 percent down payment of 950,000 birr, with the remaining balance financed through banks at zero interest over five years. After additional fees, victims paid approximately 1.365 million birr each.
The scheme unraveled when investigators discovered that while Fintech Investment plc imported 148 vehicles through Djibouti, only 100 were distributed to customers. The remaining 48 vehicles were secretly sold, with proceeds allegedly pocketed by the founders. Police also found the company made false claims about partnerships with Chinese automaker BYD Company and established a shell company called "Alfatizo" in Djibouti to acquire vehicles with minimal payment.
Seven public figures, including media personalities and influencers, were detained for promoting the scheme through endorsements. The group – Solomon Bogale, Serawit Fikre, , , , , and – reportedly received BYD Song Plus models worth approximately 8 million birr in exchange for their promotional services.
