SEC Advises Nigerians Against Investing In Ponzi Schemes

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The Securities and Exchange Commission (SEC) has issued a warning to the public over the activities of FinAfrica Investment Ltd and Poyoyo Investment, stating that the companies have not been accredited by the Commission and operate as Ponzi schemes.
The SEC disclosed in a circular by the management of the SEC and published on the commission’s website on Tuesday afternoon.
The Commission also added that the business operation style of the companies is also not authorized by the SEC.

It said: ”The attention of 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 Chinmark Group.
”The commission hereby notifies the investing public that neither FinAfrica investment Limited nor Chinmark Group is registered by SEC.
”The investment scheme promoted by these entities are also not authorised by SEC.
“In view of the above, the general 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.” 

The SEC also noted that the attention of SEC had been drawn to the electronic and WhatsApp messages being circulated to investors on behalf of Poyoyo Investment (Pilvest) Nigeria Ltd.
“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,” it added.
Meanwhile, in an interview, Dr Marksman Ijiomah, the Chairman, Chinmark Group of FinAfrica Investment Limited has reacted to the SEC’s circular saying, “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.
“What we do is that we have partners who come together and give us funds to run business and at the end of the month, we give them profit from the business.