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Nigeria’s SEC Wary of Increasing Ponzi Schemes

The Securities and Exchange Commission, (SEC) has warned Nigerians against the activities of Ponzi and other fraudulent investment schemes targeting unsuspecting citizens.

iBSmartify Nigeria, saying that neither the entity nor the illegal products they offer are registered or regulated by the commission.

A statement by Mrs Efe Ebelo, the Head, Corporate Communications of SEC, in Abuja on Sunday, said “The attention of the commission has been drawn to the activities of iBSmartify Nigeria, the promoters of a Blockchain known as iBledger (iBcashcryptocurrency) and InksNation”, the statement reads.

SEC however advised the general public that neither the promoters of iBSmartify Nigeria nor the illegal products they offer are registered or regulated by the commission.

”The commission therefore warns the general public that any person dealing with the said entity and others in the same business in any manner whatsoever, does so at his/her own risk,” she said.

She said the commission had recently raised an alarm over the proliferation of the operation of unlawful/unlicensed investment schemes, with promises of huge, but unjustifiable returns on investment.

”These activities are perpetrated by suspected promoters of Ponzi and other fraudulent schemes under the following identities: Loom Nigeria Money, Box Value Trading Company Ltd, Now-Now Alert, Flip Cash Investment.

“Others are Result Investment Nigeria Limited, Helping Hand and Investment, and No Failure Development and Empowerment Nig. Ltd, MBA Forex and Investment Ltd.

Also, Federate Investors Trading Company, Jamalife Helpers Global Ltd, Flexus Global Solutions and Investment Ltd, United Capital Investment Company Limited,” she said.

Ebelo said 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, thus making the actions of these entities listed above unlawful.

“Consequently, the general public is hereby advised to refrain from investing in any scheme of the entities listed above, and warns that any person who invest in an unlicensed/unlawful scheme does so at his own peril,” she advised.

About Babajide Iletogun

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