A Ponzi Scheme is a fraudulent investing scam promising high rates of return with little risk to investors. It generates returns for early investors by acquiring new investors and is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. I call them Fraudsters
The Securities and Exchange Commission (SEC) has warned stakeholders and the investing public against the activities of these unlawful/unlicensed market operators and promoters of these fraudulent schemes.
This was disclosed in a circular, that was released by the apex capital market operator to the investing public and capital market operators.
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The public investors were advised against dealing with these 12 fraudulent Ponzi scheme operators (fraudsters) with their bogus investment and return claims.
SEC added that these activities are perpetrated by the suspected promoters of these Ponzi and other fraudulent schemes. These Ponzi scheme operators including the following:
- Loom Nigeria Money
- Box Value Trading Company Ltd
- Now-Now Alert
- Flip Cash Investment
- Result Investment Nigeria Limited
- Helping Hand and Investment
- No Failure Development and Empowerment Nigeria Ltd.
- MBA Forex and Investment Ltd
- Federate Investors and Trading Company
- Jamalife Helpers Global Ltd
- Flexus Global Solutions and Investment Ltd
- United Capital Investment Company Limited
SEC emphasized that “Members of the public are to note that by virtue of the provisions of section 39(1) of the Investments and Securities Act (ISA) 2007, only persons registered with the commission can engage in capital market activities, thus making the actions of these entities listed above unlawful.”
Furthermore, SEC advised the general public to refrain from investing in any scheme from those firms that have been listed and warned that anybody that invests in any unlicensed/unlawful scheme, does so at their own risk.
She said that there was an upsurge of Ponzi schemes in Nigeria a few years back, so the Commission had to step up its enforcement actions to safeguard the investing public and stop these illegal operators.
Also, Nigerian, some few years ago, were victims of the then-popular Ponzi scheme, MMM, which later crashed.
