Connect with us
nairametrics

Business News

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.

Published

on

Securities and exchange Commission (SEC): Wonder banks' operators lose assets worth N2.35 billion to. SEC DG, Mary Uduk, addresses impact of CBN’s policy on equities market,,COVID-19: SEC issues guidelines for AGMs, other measures, SEC reinstates DEAP Capital’s Board

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)

GTBank 728 x 90

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.

Coronation ads

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.

Jaiz bank ads

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

Stanbic IBTC

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]

29 Comments

29 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

      • Kings Timi-Odiase

        October 28, 2020 at 7:59 am

        because some of these guys listed refuse to give kick-backs to SEC hence they are not registered. SEC should also list the registered investment firms. I understands that registration with SEC is a tug-of-war. final clearance or approval is never given given to most investment companies that have approach them for registration.

      • Gbolahan olajumoke

        October 29, 2020 at 1:30 am

        Please, annexation has scammed us with billions of naira. How can u help us to recover our money. Thanks

  3. Anonymous

    April 3, 2020 at 12:52 pm

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

    • lilian Scott

      November 20, 2020 at 2:49 pm

      PLEASE WE ARE NOT 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.

  17. John kabba

    October 2, 2020 at 8:19 am

    If SEC feels the businesses listed above are frauds and are trying to protect the Nigeria citizens, kindly give a strict instructions to them to return all invested capitals to the investors and then close up!
    SEC don’t close up any company without achieving this …or else You all are part of the scams in this country.
    Prove ur intentions are genuine.

  18. Gbolahan olajumoke

    October 29, 2020 at 1:32 am

    Please, annexation has scammed us with billions of naira. How can u help us to recover our money. Thanks

  19. Kenneth

    October 29, 2020 at 5:49 am

    Just want to find out if BETTERLIFE NIGERIA is real and not ponzi. It has refuse to pay investors ROI. It claims to be a forex investment company. With CAC number 3011059

  20. ANTHONY OSHOKE AUDU

    November 8, 2020 at 9:55 pm

    IF SEC IS SINCERE WITH THEIR DUTIES LET THEM COME UP WITH THE LEGITIMATE INVESTMENT PLATFORM WERE POOR NIGERIANS CAN INVEST THEIR MONEY
    I INVESTED WITH MBA FOREX AND I KNOW WHAT THEY DO WITH MY CAPITAL WHICH I DOO NOT IN ANYWAYS SEE IT AS PONZE SCHEME.

    OF RECENT THE BANK ARE NIW ATTACKING THESE INVESTMENTS PLATFORMS BECAUSE THEIR CUSTOMERS ARE MASSIVELY WITHDRAWAL.
    WHY WILL ONE KEEP MONEY IN THE BANK IDLE FOR BANK TO KEEP CHARGING ALL MANNER OF CHARGES WITHOUT SANCTIONS AND AT THEN WITHOUT INTERST.

  21. Stephen sese

    November 10, 2020 at 2:32 pm

    I want to know if DW-AREBEN IS REAL OR SCAM

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Coronavirus

ECOWAS COVID-19: Nigeria drops to 7th position in recovery rate

According to data from ECOWAS Centre for Surveillance and Disease Control, Nigeria has dropped to 7th position in recovery rate.

Published

on

The ECOWAS COVID-19 daily update report, as of November 22nd, 2020, shows that Nigeria is ranked 7th on recovery rate (93.5%), 10th on death rate (CFR – case fatality ratio) at 1.76%, and 9th on active cases (4.7%) amongst the 15 member countries of the ECOWAS (Economic Community of West African States).

This data can be seen on the Twitter handle of the ECOWAS Centre for Surveillance and Disease Control.

A week ago, as of 15th November 2020, Nigeria occupied the 6th position in recovery rate (93.7%), 9th position in CFR (1.79%) and 11th position in active cases (4.5%).

According to the report, there are 209,614 confirmed cases, 2,842 deaths, 189,917 recoveries, and 8,849 active cases in ECOWAS countries. This data represents in Africa, 9.8% of the confirmed cases, 5.7% deaths, 10.9% recovery rate and 3.3% active cases.

GTBank 728 x 90

As regards the death rate (CFR), Liberia tops the list with 5.29%, followed by Niger 5.12% and Mali 3.41% while Guinea is the least with 0.58%.

On recovery rate, Cote D”Ivoire tops the list with 98.3%, followed by Senegal 97.5% and Ghana 97.1%, with the least coming from Mali with 71.1%.

Mali has more active COVID 19 cases with 25.5%, followed by Sierra Leone 20.9% and Togo 20.9% and with Senegal contributing the least with 0.4%.

Coronation ads

What you should know

  • As at November 22 2020, worldwide, there are 58,649,324 confirmed cases, 1,388,068 deaths and CFR of 2.3%
  • In Africa, there are 2,057,029 confirmed cases, 49,412 deaths and CFR of 2.4%
  • In West Africa, there are 201,614 confirmed cases, 2,842 deaths and CFR of 1.41%, with a recovery rate of 94.2%.

Continue Reading

Companies

Naira devaluation, FX scarcity caused increase in cost of goods – Nigerian Breweries

Nigerian Breweries has revealed that Naira devaluation, FX scarcity caused increase in the cost of its goods in 2020.

Published

on

Jordi Borrut Bel, Nigerian Breweries Plc

The Finance Director of Nigerian Breweries Plc, Rob Kleinjan, has revealed that the increase in the brewer’s costs of goods was due to the devaluation in naira and FX scarcity, which led to the increase in the cost of inputs such as sorghum and sugar, as they are not fully produced locally.

This disclosure was made during the Nigerian Breweries’ Fact Behind Figures results presentation today.

However, Kleinjan explained that the increase in cost could not be fully attributed to currency devaluation and foreign exchange scarcity, which exerts pressure on imported input materials.

He said the increase in Nigerian Breweries’ costs of goods sold, as reported in its unaudited financial results, could also be linked to the volume of goods sold, as the company’s sales volume in Q3 increased by almost the same percentage as the cost of goods sold.

However, Mr. Kleinijan reiterated that to mitigate further losses, it was important for the company to focus on the supply chain and seek ways to mitigate price increases.

GTBank 728 x 90

What they are saying

The Managing Director of Nigerian Breweries, Mr. Jordi Borrut, while speaking at the virtual event said:

In 2020, the results of Nigerian Breweries were adversely impacted by COVID, VAT increase, FX devaluation and scarcity of foreign exchange. The year started with a promising 1st quarter, which was heavily impacted in Q2. The Nigerian market, however, rebounded in Q3.”

Deal book 300 x 250
Coronation ads

Mr. Rob Kleinjan, while explaining the factors behind the increase in Nigerian Breweries’ cost of goods sold in the first nine months of 2020, said:

It is also clear that the increase in cost is due to the devaluation and the FX scarcity which has put pressure on our input cost. If you look into the main elements we use, which are sorghum and sugar – they are not fully produced locally, so when the currency is devalued, the prices of these inputs will soar.

That’s why it’s important that we are focused on the supply chain, and seek for ways we can mitigate any of the price increases, because the increase in cost comes from the input prices, which come from FX scarcity.”

Continue Reading

ENDSARS

FG petitions CNN over investigative report on Lekki shooting, threatens action

The Federal Government has petitioned CNN over its alleged bias report on the Lekki Tollgate shooting.

Published

on

The Federal Government has written a petition to the US-based Cable News Network (CNN), demanding an immediate and exhaustive investigation into its report on the Lekki Tollgate shooting, to determine its authenticity and conformity to basic standards of journalism.

The government berated CNN for its investigative report on the #EndSARS protest in Lekki area of Lagos, pointing out that the media outfit breached the most basic of the core principles of journalism – balance and fairness.

In the petition written by the Minister for Information and Culture, Lai Mohammed, to Jonathan Hawkins, VP (Communications) in CNN Centre Atlanta, Georgia; the government said that if the international media organization does not carry out its demand, it will take any action within its laws to prevent CNN from making the #EndSARS crisis worse.

According to a report from Punch, the government’s letter dated November 23, 2020, is titled “Re: How a bloody night of bullets quashed a young protest movement”.

The letter reads: “Our attention has been drawn to an ‘investigation’ by CNN, entitled ‘How a Bloody Night of Bullets Quashed a Young Protest Movement’ and aired on 18 Nov. 2020, in which the international news organization said it uncovered that Nigerian security forces opened fire on unarmed protesters at the Lekki Toll Gate in Lagos, Nigeria, during the #EndSARS protest.”

GTBank 728 x 90

“We write to put on record that the report did not just fall short of journalistic standards, it reinforces the disinformation that is going around on the issue. It is blatantly irresponsible and it is a poor piece of journalistic work by a reputable international news organization.

“In the first instance, the report did not live up to the most basic of the core principles of journalism – balance and fairness. According to the website www.ethics.journalists.org, balance and fairness are classic buzzwords of journalism ethics: In objective journalism, stories must be balanced in the sense of attempting to present all sides of a story. Fairness means that a journalist should strive for accuracy and truth in reporting, and not slant a story that makes a reader draw the reporter’s desired conclusion.”

What you should know

Coronation ads

It can be recalled that CNN in its investigative report broadcasted on November 18, disclosed that the Nigerian army allegedly fired live ammunition directly at unarmed protesters, who peacefully assembled at the Lekki Tollgate during the #EndSARS protests. While confirming some deaths, CNN said it spoke with over 100 protesters and family members, but didn’t speak to any government official.

In response to the Federal Government’s criticism of the report, which it described as a blatantly irresponsible and a poor piece of journalistic work, CNN insisted that it was standing by its report.

Continue Reading