MMM Is A Ponzi Scheme, SEC Warns Nigerians

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The Securities and Exchange Commission has raised the alarm over the activities of some online fraudsters, who are currently running an online investment scheme tagged ‘MMM Federal Republic of Nigeria’.

The fraudsters, according to SEC, carry out their illegitimate business via Nigeria. portal/platform, and are promising investors a monthly investment return of 30 per cent.

SEC said the venture had no tangible business model, describing it as a Ponzi scheme, where returns would be paid from other people’s invested funds.

Investopedia.com describes a Ponzi scheme as a fraudulent investing scam promising high rates of return with little risk to investors. The scheme generates returns for older investors by acquiring new investors.

SEC on its website, said, “The attention of SEC, Nigeria has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.). 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, advised the general public to distance themselves from the online scheme, adding, “Please note that anyone that subscribes to this illegal activity does so at their own risk.”

In a related development, SEC said its attention had been drawn to the activities of one Mrs. Oge C. Ottiwu of No. 118 Zink Avenue, Opposite Eke Market, Awka, Anambra State, allegedly engaging in capital market activities without any 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,” it said in a post on its website.

Source: Punch

3 COMMENTS

  1. SEC should leave MMM alone…nothing is working again in this country, the cabals are the ones sucking this nation dry. MMM has come to put smiles on our faces. MMM is not a ponzi system, not a scam and it’s not a company. SEC abeg mind una business o…

  2. Who has CBN or SEC helped…

    What risk can be greater than being ruled and or govern by Such demonic Leaders. That derives pleasure in lutting Money meant for the Country’s Development..

    Point to Not this is not Mavrodi Mundial Moneybox…

    Read Before you talk,& also make findings…

    MMM has no central account anywhere, and both Old & New members Do “Donation” we are not “investing” but we are “Donating” Helping our selves..

    So it is never a Ponzi what ever, Miracle Bank or Wonder Bank or what ever anybody calls it..

    If a Bank can Survive then MMM can survive too… Bank produce Nothing yet, they have money why because they have access to our hard earned money… they Borrow Customers Loans with Customers Money, get huge interests from it and still take unreasonable charges from us. E.g they send you an Alert of Bank Interest #1.9kobo.. and at the end of the month they charge you #4.00naira for the SMS… so tell me who is fooling who…

    MMM is changing the world already and we will Survive..

    MMM lives On…

    Guider Timmie