BEVERLY HILLS, August 31, (THEWILL) – The Securities and Exchange Commission (SEC) has raised the alarm over the activities of an investment fund tagged ‘MMM Federal Republic of Nigeria’ declaring it to be fraudulent.
SEC, according to a statement on its website, described the facilitators as online fraudsters, who carry out their illegitimate business via Nigeria.mmm.net portal/platform, and are promising investors a monthly investment return of 30 per cent.
SEC said the venture had no tangible business model as returns would be paid from other people’s invested funds making it a Ponzi scheme, a fraudulent investing scam promising high rates of return with little risk to investors that generates returns for older investors by acquiring new investors.
“The attention of SEC, Nigeria 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.
“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, advises the general public to distance themselves from the online scheme.”
“Please note that anyone that subscribes to this illegal activity does so at their own risk.”
Story by David Oputah.
