AfriSwiss CEO Proffers Strategies To Tackle Ponzi Schemes

The Chief Executive Officer, AfriSwiss Capital Ltd, Kalu Aja, has warned Nigerians against investing in schemes operating outside the regulation and supervision of the Securities and Exchange Commission.

The commission had in April disowned some identified ponzi operators.

The commission described Ponzi schemes as unlawful and unlicensed investment schemes, with promises of huge, but unjustifiable returns on investment.

SEC noted that these activities are perpetrated by the suspected promoters of these Ponzi and other fraudulent schemes.

The commission had in April this year blacklisted 12 ponzi schemes Operators in the country.

They are Loom Nigeria Money, Box Value Trading Company Ltd, Now-Now Alert, Flip Cash Investment, Result Investment Nigeria Limited, Helping Hand and Investment, No Failure Development and Empowerment Nigeria Ltd, MBA Forex and Investment Ltd

Others are Federate Investors and Trading Company, Jamalife Helpers Global Ltd, Flexus Global Solutions and Investment Ltd, United Capital and Investment Company Limited.

Pointing out how to identify fraudulent schemes, the CEO said credible investment schemes must be approved by the SEC.

Aja said, “Any investment schemes claiming to guarantee principal on an activity where outcomes cannot be guaranteed says investment but no SEC license is clearly fraudulent.

“If they had a way to generate 20 per cent per month i.e. 240 per cent a year, they will simply borrow N1bn from a commercial bank and make N240bn.”

The expert said SEC approves Funds, Schemes and Investment Houses who can accept funds for investment including collective schemes.

He dvised Nigerians to look out for the SEC license and not just licence from the Corporate Affairs Commission.

Aja said, “A company must be licensed by SEC to offer, trade or manage securities or investment via offers to the public.”