SEC saves Nigerians, shuts new local ponzi scheme, Dantata Success in Kano
Though indigenous, Nigerians were Wednesday saved from another Russian MMM modeled Ponzi scheme known as Dantata Success and Profitable Company, in Kano.
Business Hilights recalls that thousands of Nigerians were between 2017 and 2018 lured into MMM with fabulous interest rates which later crashed and eroded billions of naira belonging to thousands of Nigerians before it freezed into thin air till date.
The Securities and Exchange Commission (SEC) monitoring team shut down the illicit firm based on the findings that it was carrying out investment operations that fall within fund management without registration with the apex regulator.
The law provides that such operations can only be permitted having fulfilled stipulated conditions designed by the government.
SEC in a statement averred that “They do not have registered with the SEC and the Commission has powers according to Section 13 of ISA 2007, to shut down any company carrying out capital market activities without due registration.
“Nigerian laws provide that business activities in the country have to be regulated, in this case, SEC is supposed to regulate them.
“The strategy of the company is to solicit for funds from unsuspecting members of the public by enticing them with returns of monthly interest on investment of between 25 percent and 50 percent depending on nature and investment type”, the commission explained.
According to SEC, Dantata Success & Profitable Company has sufficiently established that the company’s activities also constituted an infraction of the Investments and Securities Act (ISA), 2007.
Whereas the Ponzi scheme company displayed a registration period between February 5 and 15 in one of its numerous notices that directed all prospective customers to make deposits into their bank accounts, SEC revealed that “The company sells its forms to prospective investors according to their investment plans ranging from N1,000 to N3,000. The minimum amount investable is N50,000 while the maximum is N5,000,000
“The investment period of the scheme is pegged at a minimum of 30 working days to a maximum period of 12 months with offers of interest rates on a short and medium-term basis.
“It claims to be involved in trading, general merchandise supply, oil and gas, transportation, import, export, and general contract.
The SEC management said the closure was to end unlawful activities of the company against who preyed on unsuspecting investors, even as it urged investors to ensure they only deal with fund managers that are registered with the commission.
“The account of the company have been frozen, the promoters have been arrested by the Nigeria Police Force and are undergoing interrogation.
“The commission wishes to notify the investing public that the company is not licensed to carry out investments business of any type and as such its operations are illegal.
“SEC, therefore, advises the public to exercise due diligence and caution in the course of making investment decisions, adding that valid licence of lawful operators could be obtained on the commission’s website by members of the public to confirm the licences of firms with which they intend to carry out investment activities”, SEC averred.
