SEC Alerts on Ponzi Schemes, Unauthorized Investments 

SEC Alerts on Ponzi Schemes, Unauthorized Investments

By Sahabi Abdul

Nigeria’s Securities and Exchange Commission (SEC) issued an alert to the public about two companies it said were engaged in either a Ponzi scheme or promoting unauthorized investments.

Promises of returns ranging from 20 percent to 30 percent monthly by Poyoyo Investment Nigeria Limited, or PILVEST, are “purely a Ponzi scheme as it is a non-sustainable business model that involves the collection of money from unsuspecting investors,”  SEC said in a statement on its website.

The regulator said the company’s operations aren’t registered with it as required by the law and not based on any “tangible business model.”

SEC also alerted the public to “the activities of illegal operator” FinAfrica Investment Limited “that claimed to be an investment company” operating under a company identified as Chimark Group. Neither company is registered by the regulator for the investments they promote, SEC said in another statement.