The Securities
and Exchange Commission (SEC), has warned the investing public on the
activities of some online investment scheme tagged ‘MMM Federal Republic of
Nigeria.
According to
SEC, the promoters of the scheme carry out their business activities via
Nigeria!.mmm.net portal/platform, and are promising investors a monthly
investment return of 30 per cent.
SEC said the
venture had no tangible business model, describing it as a Ponzi scheme, where
returns would be paid from other peoples’ invested funds.
Ponzi scheme
is a fraudulent investing scam promising high rates of return with little risk
to investors. The scheme generates returns for older investors by acquiring new
investors.
The notice on
SEC’s website thus read, “The attention of SEC, Nigeria has been drawn to the
activities of an online investment scheme tagged ‘MMM Federal Republic of
Nigeria (nigeria.mmm.net). The platform has embarked on an aggressive online media
campaign to lure the investing public to participate in what it called ‘mutual
aid financial network’ with a monthly investment return of 30 per cent.
“The
commission hereby notifies the investing public that the operation of this
investment scheme has no tangible business model hence it’s a Ponzi Scheme,
where returns are paid from other people’s invested sum. Also, its operation is
not registered by the Commission.”
SEC,
therefore, advised the general public to be wary of the online scheme, adding that
anyone that subscribes to this illegal activity does so at his/her own risk.
In a related
development, SEC said its attention had been drawn to the activities of one
Mrs. Oge C. Ottiwu of No. 118 Zink Avenue, Opposite Eke Market, Awka, Anambra
State, allegedly engaging in capital market activities without any registration
within Anambra State and its environs.
“Section 38(1) of the Investments and
Securities Act, 2007 requires any person who intends to operate as a
professional in the capital market or carry on securities business to be
registered by the commission before engaging in such activities. It is
therefore illegal to carry on any kind of capital market business without
registration,” it said in a post on its website.
The sun
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