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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.

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.

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.

[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.

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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.

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- [email protected]

21 Comments

21 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.

    • Precious

      July 28, 2020 at 10:16 pm

      Honestly this is a very serious issue with Government they will never publish the good ones for us to invest in only releasing fears to the public all the time,since the above mentioned are not registered with SEC why dont they (SEC) release the list of the registered investment companies that are legit and good to go

  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.

    • Anonymous

      June 25, 2020 at 11:59 pm

      You block were an average man can take a risk with his own money. Ok provide where he can put the money or even make the environment conducive, for where? I just weak for naija.

  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

  10. Atara Felix

    June 4, 2020 at 10:01 am

    The SEC spokesperson probably needs an education on what a ponzi scheme is.

    Forex trading is no ponzi scheme. I definitely do not know about the other companies listed above, but I’ve worked closely with MBA Forex and I’ve seen their processes…

    Almost every industry and sector in our world is being disrupted by technology and unorthodox alternatives. And there’s so much information out there to provide some direction for anyone who wants to advance.

    The people who lead our regulatory systems should be smart enough to learn and adapt. Some of the things they learned in school may not hold water anymore. We don’t want to be regulated back into the ice ages.

    They should go and research what foreign companies like FTMO are doing…

    People have lost faith in our capital markets. Casting aspersion on the alternative won’t fix that. They’ve got more important work to do. They should get on with it.

    • Chizoba

      August 7, 2020 at 9:57 pm

      Is MBA Forex real?

  11. Mike

    June 11, 2020 at 11:26 am

    Now SEC has posted unlawful investment companies, but they will never tell us the legit ones to invest in

  12. Ayo

    June 17, 2020 at 11:40 am

    It is unfortunate that all these regulatory authorities just put blanket categorization on all these companies. If SEC is sincere in their own operations they only need to bring these companies together to understand what they are doing, that is if SEC truly has the interest of the investing public at heart.

    If SEC truly has interest of the investing public at heart, why have they not released the investing public funds which was seized from the so called ponzi companies. In some other climes, the regulatory authorities would act very in ensuring that such monies are released to the owners as soon as verification exercise is done. In Nigeria on the other hand, the funds finds its way into the pockets of individuals in the regulatory body.

    The capital market collapse of 2007 had many culprits that were never charged. The regulated companies cheated many people of their hard earned resources by falsifying accounting records. Till date no one has been held accountable.

    SEC knows some of these companies she termed ponzi are actually doing legitimate business. How on earth will a company trading forex be termed ponzi? A little research would have helped SEC to know that it is the business of the 21st century.

    SEC needs to rework her own operations to accommodate genuine businesses like Forex.

    • Eugene

      July 11, 2020 at 12:50 am

      Since forex means foreign exchange, foreign exchange business/trading is a legit business because we know what we are trading. Ponzi scheme is a scheme that rub peter to pay Paul, have it business in an inception stage that will not grow to its maturity stage, and do not have a valid product that they are known with. OK, SECc regulates the market, if any entity comes into the business, why can’t SEC ensure that all the necessary regulations are followed to be duly registered. Secondly, how can investors now know the legal platform to invest?

  13. Faith

    July 14, 2020 at 4:32 am

    Fixed deposit and treasury bills are no more running. In fact, their interest rate is not encouraging. We implore you to give us a list of good companies to invest in.

  14. Amanda Hoggs

    August 6, 2020 at 1:37 pm

    I am so happy to share this with you all and i know you can also get quick cash from ultimatetoolshackers.com they made me $9000, they make me the happiest person on earth their service is the best

    • Anonymous

      September 6, 2020 at 8:52 am

      SEC is a scam they put Nigerians in trouble more than the companies mentioned. What happened to the money in the account of those companies? All looted by the SEC and their staffs. This is the money that poor Nigerians invested to help themselves. Leave those companies and eradicate SEC. God punish them. Any initiative to make money is labeled illegal and they will take over the money.

  15. Mercy

    August 25, 2020 at 9:38 am

    Am surprise seeing MBA forest on the list among the Ponzi.

    How thru is this? I thought MBA is Registered and certified business firm.

  16. Anonymous

    August 29, 2020 at 4:41 am

    If SEC means well for Nigerians then they should refund all the seized fund from those schemes that crashed, expecially Boxvalue.

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Coronavirus

COVID-19 Update in Nigeria

On the 21st of September 2020, 195 new confirmed cases and 2 deaths were recorded in Nigeria.

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 57,437 confirmed cases.

On the 21st of September 2020, 195 new confirmed cases and 2 deaths were recorded in Nigeria, having carried out a total daily test of 1,162 samples across the country.

To date, 57,437 cases have been confirmed, 48,674 cases have been discharged and 1,100 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 480,874  tests have been carried out as of September 21st, 2020 compared to 479,712 tests a day earlier.

COVID-19 Case Updates- 21st September 2020,

  • Total Number of Cases – 57,437
  • Total Number Discharged – 48,674
  • Total Deaths – 1,100
  • Total Tests Carried out – 480,874

According to the NCDC, the 195 new cases were reported from 11 states- Enugu (51), Gombe (40), Lagos (39), Plateau (23), FCT (15), Rivers (12), Kaduna (8), Ondo (3), Bauchi (2), Edo (1), Ogun (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 18,982, followed by Abuja (5,566), Oyo (3,254), Plateau (3,231), Edo (2,612), Kaduna (2,356), Rivers (2,255), Delta (1,799), Ogun (1,767), Kano (1,734), Ondo (1,600), Enugu (1,285), Ebonyi (1,038), Kwara (1,025), Abia (881), Katsina (848), Gombe (839), Osun (817),  Borno (741), and Bauchi (691).

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Imo State has recorded 562 cases, Benue (473), Nasarawa (448), Bayelsa (394),  Jigawa (322), Ekiti (317), Akwa Ibom (288), Niger (254), Adamawa (234), Anambra (232), Sokoto (161), Taraba (95), Kebbi (93), Cross River (85), Zamfara (78), Yobe (75), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

 

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Business

AfCFTA: Nigeria securing approval to ratify agreement – Trade Minister

The Minister revealed that Nigeria has set up a National Action Committee on AfCFTA.

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AfCFTA: Nigeria securing approval to ratify agreement- Trade Minister, FG meets group to access AfCFTA's $650 billion market, UNIDO’s $60m investment programme to boost Nigeria’s industrialisation - FG, FG to strengthen economic ties with Turkey, FG moves to facilitate tax incentives for SMEs, Made-in-Nigeria vehicles gulp N364 billion from FG

Minister of Trade, Niyi Adebayo said Nigeria is currently in the process of securing approval to ratify the African Continental Free Trade Area (AfCFTA) agreement soon.

The Minister disclosed this during a meeting with the Secretary-General of the African Continental Free Trade Area(AfCFTA), Mene Wamkele on Monday.

Recall that Nairametrics reported last week Mr. Adebayo said that Nigeria is actively working to attract more foreign direct investments into key industries to meet the demands of the African Continental Free Trade Area (AfCFTA).

“As we gear up to meet the demands of the enlarged continental market which will be fostered by AfCFTA, we are actively working to attract more foreign direct investments into key industries,” the Minister said.

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In today’s meeting, The Minister told the delegation that Nigeria has set up a National Action Committee on AfCFTA, which would implement Nigeria’s roll-out strategy in a bid to take advantage of the agreement. He added, “Nigeria is currently in the process of securing approval to ratify the agreement within the shortest possible time”.

The African Union announced in August that the first commercial deal of AfCFTA will be taking off on January 1, 2021.

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Business

FG inaugurates Committee on the Commercialization of the Nigeria Film Corporation

The Minister said that the FG is repositioning the NFC for effective service delivery.

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FG increases hate speech fine from N500,000 to N5 million, moves against monopoly and antitrust, Coronavirus, covid-19, Minister of information briefing

The Federal Government inaugurated a Steering Committee on the Commercialization of the Nigeria Film Corporation (NFC), with the aim of making Nigeria’s film industry a continental entertainment power.

This inauguration was performed by the Minister of Information and Culture, Alhaji Lai Mohammed in Abuja on Monday. The Minister added that the FG is repositioning the NFC for effective service delivery.

“What we are doing today is to simply reposition the NFC in a manner that will enable it to play the role statutorily assigned to it,” he said.

The Minister added that Nigeria’s film industry is a major boost for Nigerian soft power and entertainment, citing the need for repositioning by the FG as a means to enable effective service delivery for the film industry to grow.

The Minister added that Nigeria lags behind her film making counterparts in the film production value chain, citing Nigeria’s 142 movie theaters compared to 782 in South Africa and 11,209 in India and many others. He urged state governments to invest a part of their infrastructure budgets for the entertainment industry as a means to generate jobs and grow the GDP.

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“It is important to appeal, especially to our state governments, to invest in infrastructure in the industry. I don’t think it will be too much for the state governments to ensure they build at least one cinema house in each local government area of their state. That will give us additional 774 cinema houses, ” he said.

The Minister added that the role of the NFC is to regulate Nigeria’s film industry and organise professional practice in the sector and also addressed challenges facing the NFC like the inability to produce its own films for commercial purposes due to the law establishing the Corporation limits on its operational functions.

Lai Mohammed said the NFC will be repositioned as the FG has engaged the services of a Business Development Consultant to conduct due diligence on the corporation and the sector and recommend a strategy that is suitable for its reform and commercialization.

“Dear members of the SC, your appointment into this committee comes with huge trust and belief in your ability and capacity to make this reform happen. I therefore urge you to consider this a critical national assignment that requires unflinching commitment and zeal,” he stated.

The members of the Steering Committee are: Honourable Minister, Federal Ministry of Information and Culture, Alhaji Mohammed as Chairman; Permanent Secretary, Federal Ministry of Information and Culture, Deaconess Grace Isu-Gekpe; Director-General, BPE, Mr. Alex Okoh; Managing Director, NFC, Dr. Chidia Maduekwe, and Director, Industries and Communications, BPE, Abdullahi Dikko, as Secretary.

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