Fraud: SEC warns Nigerians against putting money in FinAfrica, Poyoyo Investment
The Securities and Exchange Commission (SEC) has warned the public against dealings with FinAfrica Investment Ltd and Poyoyo Investment.
The commission said the two companies are not registered to operate in the Nigerian capital market, particularly labelling Poyoyo Investment as a Ponzi scheme, where returns were paid from other people’s invested sums.
SEC gave the warning via a circular published on the commission’s website.
“The commission hereby notifies the investing public that neither FinAfrica investment Limited nor Chinmark Group is registered by SEC.
“The investment scheme promoted by these entities are also not authorised by SEC.
“Given the above, the general public is hereby warned that any person dealing with the named companies in any capital market-related business is doing so at their own risk,” the disclaimer read in part.
The capital market regulator also noted the circulation of WhatsApp messages by promoters of Poyoyo Investment (Pilvest) Nigeria Ltd. seeking undiscerning investors.
“The commission hereby notifies the investing public that Poyoyo Investment (PILVEST) Nigeria Limited have no tangible business model, hence it is a Ponzi scheme where returns are paid from other people’s invested sum,” it added.
Reacting to the circular, Marksman Ijiomah, the Chairman, Chinmark Group, said in an interview that FinAfrica Investment Limited was not engaged in the capital market business.
Mr Ijiomah who disclosed that the partnership had been on for six years said that SEC had never written the company to notify them that their dealings were not in line with their regulations.
“SEC did not term us a Ponzi scheme in the circular.
“We do not do capital market business, we do not sell stock or shares. We are not into equity funding.
“What we do is that we have partners who come together and give us funds to run business and at the end of the month, we give them to profit from the business.
“We do not call it interest, we call it profit.
“We have been doing it for over six years and from that partnership, we have been able to build a six-unit hotel in Enugu.
“We have also built a restaurant in Dubai and these things are visible for everyone to see,” Mr Ijiomah said.
