The Securities and Exchange Commission (SEC) has sealed off the premises of a Lagos-based Ponzi scheme firm, Growing Circle, for engaging in illegal fund management activities.
This coming after the capital market regulator, two weeks ago, sealed a little-known company based in Kano metropolis for allegedly engaging in “illegal capital market activities”. The company’s activities can best be described as a Ponzi scheme
According to the Commission, the company was shut down over its failure to duly register with it as the apex regulator. SEC said it sufficiently established that the company’s activities also constituted an infraction of the Investments and Securities Act (ISA), 2007.
Mrs Efe Ebelo, SEC Acting Head, Corporate Communications, who spoke at the company’s premises said
“the commission has powers according to Section 13 (w) of ISA 2007, to shut down any company carrying out capital market activities without due registration. Nigerian laws provides that business activities in the country has to be regulated, in this case SEC is supposed to regulate them.”
She said that the company which engaged in networking business was also into other business activities.
Speaking further on this, SEC said the company was not licensed to carry out investments business of any type and as such, its closure was to end unlawful activities of the company against unsuspecting investors. The Commission, therefore, urged investors to exercise due diligence and caution by ensuring that they only deal with fund managers that are registered with the Securities and Exchange Commission, SEC.
About Growing Circle International
Growing Circle International Limited is an international advertising company with Headquarter in the United States. Registration into its investment program attracts one-off payment of $50 (N10k).
The investment program requires every member to introduce 2 persons each. The company claims registered members are entitled to services such as 30% Fast Movers Fund, Step Out Fund, and Next Level Fund. Some of their products include G-Herbal, G-Lemon and G-Reliever.