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Poyoyo Investment, FinAfrica Are Ponzi Schemes – SEC Warns Investors

Last Updated on December 28, 2021 by Ope Quadri

Regulator of Nigeria’s capital market has warned investors in FinAfrica Investment Limited and Poyoyo Investment (PILVEST) Nigeria Limited to steer clear of the two investment platforms, the Securities and Exchange Commission (SEC) described them as Ponzi scheme which uses investments of others to pay interest to fresh investors.

On Poyoyo Investment

On Poyoyo Investment, the commission in a statement on its official website stated that there were obvious errors in the calculation of the interest it promised its investors ranging from one month to 12 months.

Specifically, SEC highlighted the four investment categories upon which Poyoyo Investment (PILVEST) Nigeria Limited, which is registered with the Corporate Affairs Commission (CAC), promised to pay an incredible interest as returns.

The first option promises investors 20 per cent ROI on NGN100,000 investment for a period of one month; option B promises 69 per cent Returns on Investment on capital of NGN300,000 within a period of three months.

In Option C, PilVest promises to pay 150 per cent interest to investors who invested NGN500,000 for a period of six months while the last option is a duration of 12-month with an investment of NGN1,000,000 and promised 360 per cent ROI

SEC’s Position:

Poyoyo Investment “is purely a Ponzi scheme as it is a non-sustainable business model that involves the collection of money from unsuspecting investors with a promise of high return without any underlying assets,” the regulatory agency warned, saying the company has no tangible business model.

On FinAfrica Investment Limited

Similarly, SEC, which is one of the agencies of the Federal Ministry of Finance, stated in another statement that the activities of FinAfrica Investment Limited are not regulated by it and therefore tagged it as “illegal”.

It discloses that investments of individuals in FinAfrica are used under another entity called Chimark Group.

SEC’s declaration

“The Commission hereby notifies the investing public that neither FINAFRICA INVESTMENT LIMITED nor Chimark Group is registered by the SEC and the Investment Scheme promoted by these entities are also not authorized by the SEC”.

SEC warned Nigerians to stop dealing with both companies.

Why Ponzi Scheme Is a Thriving Business In Nigeria

Fraudulent investments thrive in Nigeria majorly because of greed. Between 2016 and 2017 when MMM was popular among Nigerians, SEC warned millions of Nigerians who invested their hard-earned monies, but the investors were adamant, saying it was their money and not the governments.

After MMM closure and the death of its founder Sergei Mavrodi, some of them found a new one with different names.

The latest of such investment was undertaken by a couple Bamise and Elizabeth Ajetunmobi. They both founded Imagine Global Solutions Ltd where thousands of Nigerian invested monies worth several million of US Dollars. By the time the couple strategically closed the investment, they had garnered NGN22 billion which they fled with.

Insha Allahu is another Ponzi scheme that lured thousands of Nigerians with incredible ROI.

Of recent, another couple Gloria Osei and Muyiwa Folorunsho, obtained Commonwealth of Dominica passports after collecting multi-million dollars from Nigerian investors who wanted never-before interest.

Pinkoin, a fraudulent blockchain project which was registered under iBSmartify Nigeria is another Ponzi scheme where hundreds of Nigerians counted their losses.

Despite several calls by authorities, investors hardly listen, “we’ll invest when it’s still fresh” is one of the commonest statements by some stubborn investors, who claimed they could do anything with their money.

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