The Securities and Exchange Commission (SEC) has raised the alarm over 12 fraudulent ‘ponzi’ schemes, making dubious investment and return claims.
The apex capital market regulator said in a circular that the 12 companies were neither registered nor licensed for their activities.
It warned members of the investing public to be wary of the activities of illicit and unauthorised operators and promoters of fake schemes.
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The circular said: “The Commission, in recent time, has observed the proliferation of the operation of unlawful and unlicensed investment schemes, with promises of huge, but unjustifiable returns on investment.”
The regulatory body gave the names of suspected promoters of ponzi and other fraudulent schemes as Helping Hand and Investment, MBA Forex and Investment Ltd., Loom Nigeria Money, Box Value Trading Company Ltd., Now-Now Alert, Flip Cash Investment, United Capital Investment Company Ltd., Flexus Global Solutions and Investment Ltd., Result Investment Nigeria Ltd., Federate Investors Trading Company, Jamalife Helpers Global Ltd, and No Failure Development and Empowerment Nig. Ltd.
It insisted that by virtue of the provisions of Section 38(1) of the Investments and Securities Act (ISA) 2007, only persons registered with the Commission could engage in capital market activities.