The SEC recently warned the investing public, in separate circulars on its website about Ponzi schemes set up by two companies. It declared FinAfrica to be an illegal operator. According to the circular, FinAfrica claimed that it is focused on expanding the commercial sectors of the economy and also aiding in funding entities under a service platform, Chinmark Group.
However, the circular did warn Nigerian investors that neither FinAfrica Investment Limited nor Chinmark Group are registered with the Securities and Exchange Commission, as a result, the entities’ schemes are not permitted.
“The public is hereby warned that any person dealing with the named companies in any capital market-related business is doing so at their own risk”.
SEC highlighted the process of rewards by Poyoyo Investment which is paid from other people’s money. The Commission was alerted by the electronic and WhatsApp messages sent out on behalf of Poyoyo Investment (Pilvest) Nigeria Limited to investors.
The electronic message indicates a proposal to investors to invest in guaranteed investment plans of either a minimum capital of N100,000 for a period of one month with a return on investment (ROI) yield of 20% or a minimum capital of N300,000 for a period of three months with a monthly ROI of 23% monthly.
“The Commission hereby notifies the investing public that Poyoyo Investment (Pilvest) Nigeria Limited have no tangible business model; hence it is a Ponzi scheme where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission”, the circular reads.
Marksman Ijiomah, chairman of Chinmark Group, responded to the circular by telling News Agency of Nigeria (NAN) that FinAfrica Investment Limited was not in the capital market industry.
The SEC had never addressed the corporation to alert them that their operations were not in compliance with their regulations, according to Ijiomah, who revealed that the collaboration had been going on for six years.
“SEC did not term us a Ponzi scheme in the circular. We do not do capital market business, we do not sell stock or shares. We are not into equity funding.
We have partners who come together and give us funds to run the business and at the end of the month, we give them profit from the business.
SEC has neither invited us nor sent us a circular to say that what we are doing is not in line with their regulations before they made the publication”, he said.
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