Ponzi Scheme in Nigeria drowns millions from people who are uninformed and ignorant of the concept. The Securities and Exchange Commission (SEC) has continually cautioned the public against fraudulent schemes that present attractive rewards.
The commission recently released a circular to warn the investing public as well as the capital market operators. SEC lists 12 companies in the circular and stated that they have no registration or licence to carry out such activities. They are therefore warning the investing public to avoid any kind businesses with them. They are unlawful and unlicensed operators.
Loom Nigeria Money, Box Value Trading Company Ltd, 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, Now-Now Alert, Flip Cash Investment and Result Investment Nigeria Limited.
The circular also quotes:
“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.”
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SEC Acting Director-General, Securities and Exchange Commission, Ms Mary Uduk said they still see Ponzi Scheme surging in Nigeria.
Dealers often present with fake documents to their would-be victims. This assures them that the SEC and other government agencies have given them approval.
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