The Securities and Exchange Commission (SEC) has warned the public over the activities of an investment fund called ‘MMM Federal Republic of Nigeria’, saying it is a scam that must be avoided. It said anybody involved in such dubious investment risks losing his or her money.
For some time, some Nigerians have been engaged in a financial network marketing which involves no product sales but yields as high as 30 per cent profit monthly. Though, it sounds curious but more Nigerians are being recruited into the network.
SEC, according to a statement on its website, described the facilitators as online fraudsters, who carry out their illegitimate business via Nigeria.mmm.net portal/platform, and are promising investors a monthly investment return of 30 per cent.
SEC said the venture had no tangible business model as returns would be paid from other people’s invested funds making it a typical Ponzi scheme. A Ponzi scheme is a shady investment scam which gives high rates of return with little risk to older investors from money generated from new investors. The managers of the scheme soon reaches a threshold where they can no longer pay any of the investors hence they fold up and disappear with people’s money.
“The attention of SEC, Nigeria 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.”
“SEC, therefore, advises the general public to distance themselves from the online scheme.”
“Please note that anyone that subscribes to this illegal activity does so at their own risk,” the statement warned.
