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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.’’
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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-General, Securities 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.
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.
Is that what gave them the audacity to start withdrawing money from boxvalue frozen account and not refunding owners of the money?
Is bars finance house also included?
SEC should please release the names of the authentic investment companies so Nigerians will be well guided.
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
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.
Please, annexation has scammed us with billions of naira. How can u help us to recover our money. Thanks
Exactly! Was expecting that too
Block the account and share the money among yourselves, You are all scammers.
PLEASE WE ARE NOT SCAMMERS
Recently Chy mall e-commerce is being patronised by the public with various returns after 10 days.Are we secured in this direction.
Block the account and keep the money to yourselves, You are all scammers.
We have seen the name of the unlawful investment companies, please let us also see the list of the registered ones
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.
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
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.
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.
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
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.
Is MBA Forex real?