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SEC discovers 12 ponzi scheme operators, warns investing public

SEC has warned stakeholders and the investing public against the activities of some unlawful/unlicensed market operators and promoters of other fraudulent schemed.

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The Securities and Exchange Commission (SEC) has warned stakeholders and the investing public against the activities of some unlawful/unlicensed market operators and promoters of other fraudulent schemed.

This was disclosed in a circular, which was released by the apex capital market operator to the investing public and capital market operators.

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In the circular, the investing public was advised against dealing the 12 fraudulent Ponzi scheme operators with their bogus investment and return claims.

The commission, in recent time, has observed the proliferation of the operation of unlawful/unlicensed investment schemes, with promises of huge, but unjustifiable returns on investment.’’

[READ MORE: SEC to strictly regulate crowdfunding, issues new rules)

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SEC said these activities are perpetrated by the suspected promoters of these Ponzi and other fraudulent schemes. These Ponzi scheme operators include:

  • 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 pointed out 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.”

Consequently, 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 peril.

Recall that in 2019, SEC clamped down on some of those Ponzi scheme operators which include MGB Global, X-World, Money Rite, No Failure Development, Dantata Success & Profitable Company and so on.

The commission blocked the bank accounts and real estate properties linked to operators of the Ponzi schemes and also sealed their premises.

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Acting Director-GeneralSecurities and Exchange Commission (SEC), Ms Mary Uduk, stated that the Commission had recorded significant successes in its efforts to protect the investing public from fraudulent persons.

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[READ ALSO: SEC adjusts operations, introduces e-filing, other measures)

She said that there was an upsurge of Ponzi schemes in Nigeria in 2019, so the Commission had to step up its enforcement actions to safeguard the investing public and stop these illegal operators.

Nigerian, some few years ago, were victims of the then-popular Ponzi scheme, MMM, which later crashed.

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.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- chike.olisah@nairametrics.com.

9 Comments

9 Comments

  1. Anonymous

    April 2, 2020 at 12:58 pm

    Is that what gave them the audacity to start withdrawing money from boxvalue frozen account and not refunding owners of the money?

  2. Roseline

    April 3, 2020 at 10:54 am

    SEC should please release the names of the authentic investment companies so Nigerians will be well guided.

  3. Anonymous

    April 3, 2020 at 12:52 pm

    Block the account and share the money among yourselves, You are all scammers.

  4. Abdulfattah

    April 3, 2020 at 12:56 pm

    Block the account and keep the money to yourselves, You are all scammers.

  5. Emeh

    April 3, 2020 at 2:36 pm

    We have seen the name of the unlawful investment companies, please let us also see the list of the registered ones

  6. VICTOR IGBINIGIE

    April 3, 2020 at 2:48 pm

    NOTHING FUNNY HERE. THE SAME SECURITIES AND EXCHANGE COMMISSION THAT COULDN’T REGULATE THE STOCK AND FINANCIAL MARKET WHEN IT’S PLAYERS WERE ENGAGED IN ALL SORT OF UNETHICAL CONDUCT NOW WANTS TO ‘REGULATE’ ONE OF THE FEW OUTLETS OPEN TO THE AVERAGE NIGERIAN TO INVEST AND MAKE AN HONEST BUCK.
    LET’S FACE IT, THIS HAS NOTHING TO DO WITH OVERSIGHT OVER AN ‘ERRANT’ INDUSTRY BUT MORE TO DO WITH ADMINISTRATIVE POWER GRAB AND THE ATTENDANT PERKS THAT FOLLOW.

  7. OGAH ABAH

    April 3, 2020 at 4:37 pm

    WHAT HAS BEEN THE EFFORT OF USELESS SEC IN NIGERIA ECONOMY AND THE LIFES OF NIGERIANS, WHICH INVESTMENT COMPANY HAS SEC ESTABLISH FOR NIGERIANS TO INVEST AS SOURCE OF INCOME WHEN BANKING INDUSTRIES HAS FAILED THE NATION AND CREATE HARSH LIFESTYLE, WHAT IS THE CONCERN OF USELESS SEC WHEN AN INDIVIDUAL TAKES HIS OR HER FINANCIAL RISK, INVESTMENT IS PERSONAL AND SOME INVESTMENT COMPANIES HAS HELP REVITALIZED LIVES FOR YEARS, SEC SHOULD THEIR WICKED GREED AND ALLOW NIGERIANS TO DECIDE HOW THEY USE THEIR FUNDS SINCE THIS USELESS SEC DID NOT AND CANNOT GIVE PUBLIC EVEN SIMPLE SOFT LOAN TO SUPPORT BUSINESS, MAY GOD PUNISH WHO EVER POSTED THIS TO DISCOURAGE NIGERIAN MASSES, SINCE ITS OUR PERSONAL FUND SEC STAY AWAY FROM US, LEAVES US YOU ARE USELESS TO US AND THE COUNTRY, SHAME ON YOU GUYS. I WANT TO BE INVITED FOR A TALK SHOW ON THE USELESSNESS OF SEC, ANYONE CAN CALL ME ON 07030590774

  8. James

    April 3, 2020 at 4:45 pm

    While not try to approach them and register them. They are really helping the situation of Nigerians. The stock market is too complicated for most people to invest. People also loose money in the stock market too.

  9. Anonymous

    April 3, 2020 at 7:12 pm

    Fuck this so called SEC. God punish you all. Your greed will consume you and your generations. You want to eat the monies of innocent Nigerians. May death come upon you all swiftly. I hope you get to see this message

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Economy & Politics

Lagos to shut down Marine Beach bridge for emergency repairs

The closure will allow the Federal Ministry of Works to carry out emergency repairs on the bridge, in line with the government’s vision of providing a better transportation system in the state.

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Lagos to shut down Marine Beach bridge for emergency repairs

Lagos state government has announced that the Apapa Marine Beach bridge will be closed for five months, from Wednesday 27th May, to Wednesday 21st October, 2020.

The closure will allow the Federal Ministry of Works to carry out emergency repairs on the bridge, in line with the government’s vision of providing a better transportation system in the state.

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In a statement from the Lagos state Ministry of Transportation, the Commissioner, Dr. Frederic Oladeinde, noted that the repairs were long overdue, and necessary to ensure safety of Lagosians, given the number of motorists that use the route.

READ MORE: Nigerians knock Fashola over comments on “bad roads”  

The Commissioner noted that the repairs included bearing and expansion joint replacement and would be executed in two phases, taking one lane of the bridge at a time.

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The first phase will involve handling the lane inbound Apapa while the second phase will be designated to work on the lane that conveys vehicles outside the axis,” he said.

Alternative routes

Oladeinde noted that alternative routes around the bridge had been improved to make them motorable, and ease movements for road users.

READ ALSO: Osinbajo sets up committee on reopening of Nigerian economy, suspends loan deductions for states

To manage the construction period, the statement noted that Traffic Management Authorities would be hard at work to ameliorate the expected traffic issues and supervise other arrangements.

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“Motorists inwards Wharf road will be diverted to the other section of the bridge outwards Apapa, a contraflow of 200metres has been put in place for vehicles to realign with a proper direction inwards Ajegunle or Wharf road, Apapa, while Motorists descending to Total Gas under bridge will drive without any hindrance,” it read.

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The Commissioner called for the understanding and cooperation of motorists and road users during the period to ensure a smooth flow of plans.

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Economy & Politics

Fayemi set to activate digital economy with N5billion broadband infrastructure

Governor Fayemi plans to activate Ekiti state’s digital economy, this would help generate healthy competition within the ICT sector

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Fayemi set to activate digital economy with N5billion broadband infrastructure in Ekiti state

Ekiti state government has concluded plans to create a digital hub, with the laying of a 606-kilometer broadband infrastructure.

The project is expected to lift the state from 16% internet penetration to 90% and is estimated to be worth N5 billion, with the Federal Government contributing N1.1 billion of the total sum.

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This plan is part of the memorandum of Understanding (MoU) which the state Governor signed with O’odua Infraco Resources Limited, a consortium that develops high speed and efficient Fibre Optic Cable (FOC) Open Access Network (OAN) across the South-West region of Nigeria.

According to the Managing Director of O’odua Infraco Resources Limited, Mr Sammy Adigun, the project will be officially flagged off in October and completed within 14 months.

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(READ MORE: What Nigeria stands to gain from new National Broadband Plan)

This decision is a follow-up to the recent crash of Right of Way charges from N4,500 to N145 per meter for broadband infrastructure, and in line with one of the five pillars of Governor Kayode Fayemi’s development plan for Ekiti state.

The Governor noted that these decisions would help generate healthy competition within the ICT sector, thus activating Ekiti state’s digital economy and digital education.

Fayemi noted that the project execution, as well as the broadband policy in the state would be coordinated and supervised by a Digital Infrastructural Committee, made up of various relevant government institutions critical to the implementation of the project.

READ MORE: NCC, Infracos to boost broadband infrastructure with N265 billion 

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“For us the roadmap is first the fibre connectivity itself, the second is the adequate data center infrastructure, the third is the e-learning programme which will cover our educational institutions, then our safe city, our security programme will also be included.

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“With our geographical land information system (GIS), we would digitalize all our land records, and of course, commercial investment as well as digitalisation of our government assets and our health education initiative,” Fayemi explained.

 

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Economy & Politics

NCC reacts to claims that minister chased Diaspora Commission’s staff from office complex

The NCC denies claims of the video on social media, pointing out that the staffs of NIDCOM were not sent packing from the digital economy complex

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NCC orders immediate suspension of USSD charges by telcos, 5G Network to undergo 3 months trial before approval - NCC , NCC licenses 20 new Internet service providers amidst challenges , 150 million Nigerians risk being defrauded – NCC , NCC warns telcos against cyber fraudsters , NCC rolls out new regulations on drone use, NCC licenses 10 new VAS providers as it projects market to hit $500 million , NCC, Infracos set to develop broadband infrastructure with N265 billion raise , Telecommunications: Broadband penetration set to grow, Telecoms operators fined N2.9 billion over infractions , NCC reacts to claims that minister chased away diaspora commission staff from office complex

The Nigerian Communications Commission (NCC) has reacted to claims by the Chief Executive of Nigeria Diaspora Commission (NIDCOM), Abike Dabiri-Erewa, that her staff members were chased out of its premises by armed men on the orders of the Minister for Communication and Digital Economy, Isa Pantami.

The NCC, through a press statement on May 24, 2020 signed by its Director, Public Affairs, Dr. Henry Nkemadu, has said that nothing of such happened as it denied claims in a video making rounds on social media that the staff of NIDCOM were sent packing from the digital economy complex.

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According to the press statement from NCC:

Following the completion of the NCC building at Mbora, Abuja designated as NCC Annex and the acute shortage of accommodation space for the staff of the commission in the NCC head office at Maitama, Abuja, the Board of the commission directed the decongestion of the Head office building. Some of the departments of the NCC had started moving to the new office complex of 5 floors when discussions were held between the NCC and the Diaspora Commission to enable the Diaspora Commission also utilize any free offices within the complex.

“The fifth floor allocated to them had to be used to accommodate other departments from the NCC headquarters to ease the congestion. NCC’s offer to house the Nigeria Diaspora Commission was predicated on the long held position of the NCC that agencies of government will achieve more through strategic collaboration, partnership, synergy and sharing to the extent allowed by relevant laws.”

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(READ MORE: PenCom dissolves interim management committee for First Guarantee Pension, appoints new board)

NCC disclosed that it had secured approval for the commissioning of the office complex by President Buhari, and also the launching of 4 important projects of NCC, together with the renamed Ministry of Federal Ministry of Communication and Digital Economy.

It also stated that the offer to NIDCOM had not been withdrawn, but had only hit a bump arising from the preparation for the visit of President Buhari to launch the projects and inaugurate the complex. It said that the Board and Management of NCC took a decision to ensure that every activity in the building was in line with the Federal Government’s agenda.

Going further, the statement reads:

“Incidentally, after the offer of the office spaces to the Diaspora Commission, the Director General, Mrs. Abike Dabiri-Erewa had not visited the complex to take possession of any of the offices and also the commission had not started using any of these spaces as offices.

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‘’As is usual in ensuring security and accountability before, during and after presidential visits, the building had to be cleared to allow for only known and identifiable persons to have access within the complex. Therefore, the Honourable Minister of the Federal Ministry of Communications and Digital Economy Dr. Isa Ali Ibrahim Pantami could not have sent armed men to drive the staff of the Diaspora Commission out of the Communication Economy Complex.”

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The statement also pointed out that as at that time, only NCC staff were accredited to have access within the premises and that all properties belonging to NIDCOM were safely warehoused in some of the offices within the complex.

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