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Wed, Aug 30, 2023 7:20 PM

SEC Shuts Down Ponzi Scheme Promoter in Maiduguri

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SEC Shuts Down Ponzi Scheme Promoter in Maiduguri
The Securities and Exchange Commission (SEC) has taken action against a Ponzi scheme promoter in Maiduguri, Borno State. The company, Stockmatch Investments Ltd, was found to be engaging in illegal investment activities, promising unrealistic returns to unsuspecting investors. The SEC has shut down the company's office and cautioned the public to be wary of unregistered entities offering investment services.

ABUJA - In a renewed onslaught against promoters of Ponzi schemes, the Securities and Exchange Commission (SEC) on Tuesday sealed the premises of Stockmatch Investments Ltd in Maiduguri, Borno State, for allegedly engaging in illegal investment activities.

According to the commission, the office of the company in Wulari Plaza on Lagos Street Maiduguri was shut down for allegedly carrying out investment operations that fell within the ambit of fund management without registration by the SEC.

"This company does not have registration of the SEC to conduct fund management activities and has been found to promise exorbitant rates of returns to lure investors. The SEC has exercised its powers under Section 13 (w) Investments and Securities Act 2007, to shut it down"

"The commission hereby notifies the investing public that neither this entity nor its investment platforms are registered by the SEC.

"The public is hereby reminded that it is unlawful for any private enterprise whether incorporated as a company or not, to solicit funds from the public by whatever means, to fund its private ventures as doing this will be in contravention of the Investments and Securities Act, 2007'' the SEC stated.

The Commission, therefore, advised the public to always confirm from the commission whether an entity providing investment services has been duly registered and whether the investment schemes are authorized by it.

It warned that any member of the investing public dealing with unregistered entities was doing so at his/ her own risk.

It further encouraged the public to exercise due diligence and caution in making investment decisions, adding that a list of valid operators can be obtained on its website

This recent action by the SEC demonstrates the regulator's commitment to protecting investors from fraudulent schemes. Ponzi schemes, like Stockmatch Investments Ltd, typically promise unreasonably high returns to lure unsuspecting individuals into investing their hard-earned money. However, these schemes are unsustainable and ultimately collapse, leaving many investors with substantial losses.

The shutting down of Stockmatch Investments Ltd's office in Maiduguri serves as a warning to other unregistered entities and potential perpetrators of investment scams. The SEC's mandate is to regulate and protect the Nigerian capital market, ensuring that investors can make informed decisions and participate in a fair and transparent environment.

To safeguard oneself from falling victim to Ponzi schemes and other fraudulent investment activities, the SEC advises the public to verify the registration status of any entity offering investment services. The commission's website provides a list of authorized operators, allowing individuals to verify the legitimacy of investment opportunities.

Investors must exercise due diligence and caution before committing their funds to any investment scheme. If an opportunity seems too good to be true, it often is. High returns without commensurate risks should raise red flags and prompt individuals to investigate further.

In conclusion, the SEC's actions against Stockmatch Investments Ltd highlight the ongoing battle against investment scams. The regulatory body's efforts to protect the public and maintain the integrity of the capital market are commendable. However, it is crucial for individuals to remain vigilant and conduct thorough research before investing their money.

Source of content: OOO News 2023-08-30 News

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