SEC warns investors on illegal capital market operators

The Securities and Exchange Commission (SEC) has warned investors of two illegal capital market operators not registered under the commission.

The apex capital market regulating body stated that an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net) and Mrs. Oge C. Ottiwu of No. 118 Zink Avenue, Opposite Eke Market, Awka, Anambra State, have engaged in capital market activities illegal.

SEC in a circular explained: “The attention of the SEC has been drawn to the activities of Mrs. Oge C. Ottiwu of No. 118 Zink Avenue, Opposite Eke Market, Awka, Anambra State, who engages in capital market activities without registration within Anambra State and its environs.

‘’Section 38(1) of the Investments and Securities Act, 2007 requires any person who intends to operate as a professional in the capital market or carry on securities business to be registered by the Commission before engaging in such activities. It is therefore illegal to carry on any kind of capital market business without registration. In view of the above, the general public is hereby WARNED that any person dealing with the within named person in any capital market related business is doing so at his/her own risk.”

Also, SEC said its attention has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net). “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.

“The general public is hereby advised to distance themselves from this online scheme. Please note that anyone that subscribe to this illegal activity does so at his/her own risk,” SEC warned in the statement.

 

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