- Over 500,000 Nigerians risk losing fund
Since the Securities and Exchange Commission raised the alarm over the activities of an online investment scheme, MMM Federal Republic of Nigeria, concerned Nigerians and patrons have expressed worries over the issue.
Contrary to the allegation of fraud levied against the platform by SEC, some of its patrons told The Point that the scheme is not an investment scheme but a platform where people donate their loose fund to the less privileged and make a profit of about 30 per cent at the end of each month.
A patron, Mr. Isaac Ohibor, argued that the SEC’s allegations of fraud cannot be substantiated with any concrete evidences.
“No matter the allegations levied against MMM, it would not bring the system down because Nigerians have come to realise the secret behind those ungrateful banks that make the poor work hard with little or no interest, using the money of poor Nigerians to enrich themselves,” he said.
Like Ohibor, a teacher in Osun State, Mr. Leonard Oni, expressed his displeasure in what he described as ignorance on the part of the apex regulator.
He stated that MMM is not an investment program and not a Ponzi scheme.
“Working for the government and not been paid for six months, which scam is bigger than that. If SEC thinks MMM is a scam, then the state government, which owe salaries and failed to cater for the welfare of their workers after all promises, is a bigger scam,” he added.
However, if SEC’s allegations are confirmed, there are fears that the investment of over 500,000 subscribers are at risk.
The stock market regulator had alleged that some culprits carry out their illegitimate business via Nigeria. mmm.net portal/platform.
SEC disclosed that the scheme had no tangible business model, describing it as a Ponzi scheme, where returns would be paid from other people’s invested funds.
Ponzi scheme is a fraudulent investing scam, promising high rates of return with little risk to investors. The scheme generates returns for older investors by acquiring new investors.
SEC advised 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,” it said.
