SEC cautions investor against ‘Ponzi Scheme’

 

secThe apex capital market regulator in Nigeria, the Securities and Exchange Commission (SEC) has cautioned investing public to distance themselves from dubious online investment.

The commission stated this in a notice published on its website page said it attention has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net).

SEC said, 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 said.

It however advised general public to distance themselves from this online scheme saying, anyone that subscribe to the illegal activity does so at his/her own risk.