SEC raises alarm over new ‘Ponzi schemes’ FinAfrica and Poyoyo Investment
The Nigeria Securities and Exchange Commission (SEC) has issued a public warning regarding the activities of FinAfrica Investment Ltd and Poyoyo Investment.
According to the investment regulator, the companies are Ponzi schemes and are not SEC-accredited.
The announcement was made by the exchange commission via a circular sent by the commission’s management and posted on the website.
According to the commission, FinAfrica Investment claims to be a business development company that invests in commercial sectors of the economy as well as Chimark Group companies.
According to the Commission, the operations of both businesses and the Chimark group are not approved by the SEC, and the investment scheme promoted by these entities is illegal.
“The attention of the SEC has been drawn to the activities of an illegal operator, FinAfrica Investment Limited. The company claimed to be an investment company that engages in business development in commercial sectors of the economy and uses the funds in entities under the Chinmark Group.”
“The commission hereby notifies the investing public that neither FinAfrica Investment Limited nor Chinmark Group is registered with the Securities and Exchange Commission.” These entities’ investment schemes are also not authorized by the SEC. Given the foregoing, the general public is hereby advised that any person dealing with the named companies in any capital market-related business does so at their own risk.
Similarly, the commission issues a strong warning to the general public about the activities of Poyoyo Investment (Pilvest) Nigeria Ltd.
The commission reaffirmed that it had been made aware of electronic and WhatsApp messages sent to investors on behalf of Poyoyo Investment (Pilvest) Nigeria Ltd.
According to the SEC, the company lacks a tangible business model that qualifies it as a legitimate enterprise, making it a Ponzi scheme that harms Nigerians.
“The commission hereby notifies the investing public that Poyoyo Investment (PILVEST) Nigeria Limited has no tangible business model; hence it is a Ponzi scheme where returns are paid from other people’s invested sums,” it added.
Similar Ponzi schemes have existed in the past
The SEC’s public warning is not the first time the commission has raised concerns about illegal Ponzi scheme transactions.
Nigerians are notorious for falling prey to investment firms that are more willing than ever to defraud them of their hard-earned money.
Ponzi schemes that have emerged to defraud citizens include A Case of MMM, Pokemoney Investment, Rasterli, Twinkas, and Ultimate Cycler.
Perpetrators of these deceptive scams appear from nowhere, posing as idealists and selling people hope for a better tomorrow. Meanwhile, their main goal is to rob Peter to pay Paul.
Some of these Ponzi schemes obtain critical legal documents before launching ad campaigns and experimenting with targeted marketing strategies, all while projecting an intimidating corporate image.
They offer celebrities collaboration deals or financial compensation for brand endorsements in order to further legitimize their activities and gain access to millions of consumers.
However, as massive financial investment losses reveal the true intentions of the principals, new methods of blackmailing Nigerians are being developed and deployed.
