The Securities and Exchange Commission (SEC),says the operations of FinAfrica Investment Limited and Chimark Group was illegal, and warned the investing public against dealing with the two firms.
The agency’s warning was contained in a circular made available to newsmen.
SEC disclosed that its attention had been drawn to the activities of “an illegal operator FinAfrica Investment Limited”, which “claimed to be an investment company that engages in business development in commercial sectors of the economy and uses the funds in entities under Chimark Group”.
It said neither FinAfrica Investment Limited nor Chimark Group is registered by the Commission and the investment schemes being promoted by these entities are also not authorized by the SEC.
“In view of the above, the general public is hereby warned that any person dealing with the within named company in any capital market related business is doing so at his or her own risk,” SEC stated.
The latest circular followed the declaration of another firm, Poyoyo Investment (Pilvest) Nigeria Limited, as a Ponzi scheme, a front to defraud unsuspecting investors.
SEC had noted that electronic and WhatsApp messages were being circulated to investors on behalf of Pilvest.
It said the electronic message indicates a proposal to investors to invest in guaranteed investment plans of either a minimum capital of N100,000 being invested for a period of one month with a returns on investment (ROI) yield of 20 per cent or a minimum capital of N300,000 being invested for a period of three months with a monthly ROI yield of 23 per cent monthly “and total ROI yield is 69 per cent” or a minimum capital of N500,000 being invested for a period of six months with “a ROI yield of 25 per cent monthly and total ROI yield is 150 per cent” or a minimum capital of N1 million being invested for a period of one year with a “ROI yield of 30 per cent monthly and total ROI yield is 360 per cent”.
“Besides the obvious errors in the returns calculations above, preliminary investigation has revealed that Poyoyo Investment (PILVEST) Nigeria Limited is purely a Ponzi scheme as it is a non-sustainable business model that involves the collection of money from unsuspecting investors with a promise of high return without any underlying assets.
“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.
“In view of the above, the general public is hereby warned that any person dealing with the within named Company in any capital market related business is doing so at his or her own risk,” SEC stated.
