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SEC Warns Investors, Says FinAfrica, Poyoyo Investments Are Ponzi Schemes

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Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) has warned that FinAfrica Investment Ltd and Poyoyo Investment (PILVEST) are Ponzi schemes.

 

SEC cautioned that anybody investing in FinAfrica Investment and PILVEST are doing so in their own risks.

 

It said the companies have no SEC accreditation and so are illegal companies out to swindle the unsuspecting investors.

 

In a circular on Tuesday, SEC said it did not authorize the business operation styles of the said companies.

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What you should know:

 

Poyoyo Investment (PILVEST) is an investment platform that also uses electronic and WhatsApp messages as operating tools.

 

It sends investment messages to potential investors via the tools.

 

Similarly, FinAfrica Investment says it is an investment platform that engages in business development in commercial sectors of the economy.

 

It said it uses funds which investors invest “to run business and at the end of the month, we give them profit from the business.”

 

What SEC is saying?

 

Despite the companies’ claims, the SEC urges investors to avoid investing in the companies.

 

The circular reads thus:

 

”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.”

 

Warning the public against investing in Poyoyo Investment (PILVEST), SEC, Cracktechnology.com, said as follows:

 

“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.”

 

Meanwhile, in an interview with the News Agency of Nigeria (NAN), the Chairman, Chinmark Group of FinAfrica Investment Limited, Dr Marksman Ijiomah maintained that FinAfrica is legit.

 

She stated as follows:

 

“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.

 

“We do not call it interest, we call it profit.

 

“We have been doing it for over six years and from that partnership, we have been able to build a six unit hotel in Enugu.”

 

Implications:

 

While there are many investment platforms out there, investors must ensure that the platforms are duly authorized.

 

Also, the public must be wary of platforms that are out to defraud the people.

 

Recall a popular Ponzi scheme, МММ that swindled Nigerians of millions of naira.

 

MMM was a Russian company behind one of the world’s largest Ponzi schemes of all time.

 

By different estimates from 5 to 10 million people lost their savings in Nigeria and many other countries.

 

Many had committed suicide while others have never recovered from the loss.

 

Therefore, FinAfrica Investment Ltd and Poyoyo Investment (PILVEST) need to get SEC’s authorization.

 

This will boost investors’ confidence.

Anthony Chinonso Ogbonna is the editor of Techuncode media. He is a seasoned journalist whose stint cuts across broadcast, print and, especially, the online media. A graduate of Mass Communication from the University of Nigeria, Nsukka (UNN), Anthony holds a Masters Degree in Multimedia Journalism. He aligns his belief with those of world tech communities, holding tenaciously that the world is solely driven and can only be best with tech. Furthermore, Anthony believes that technology is simple, fun and is not what one, especially Africans, should be scared of, hence, his passion for telling compelling stories about tech in ways relatable to the ordinary user. He has his hobbies in reading and designing (new hobby though.)

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