ABUJA (Sundiata Post) – The Securities and Exchange Commission (SEC) has warned investors about the activities of a fund operator and a company, which has been engaging in illegal capital market activities.
In a circular, the apex capital market regulator cautioned the public that one Mrs Oge Ottiwu and an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net) are not registered by the commission to carry out any capital market activity.
According to SEC, the attention of the commission has been drawn to the activities of Mrs. Oge C. Ottiwu in Anambra State, who engages in capital market activities without registration within Anambra State and its environs.
SEC has warmed the public not to transact any capital market business with the said Ottiwu, saying investors wishing to invest in the capital market to transact through bona fide operators registered with the capital market regulators which are available on the regulators’ website.
Also, the commission attention 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.
SEC noted 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, which is not registered by the commission.
It also stated that 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.
The commission recently said the law enforcement agencies and the commission have collaborated to achieve zero tolerance to infractions in Nigerian capital market, and to ensure that the perpetrators of fraudulent acts are brought to book appropriately.
