CHALLENGE TO EXAMINE THE EVIDENCE AGAINST MMM – AN OPEN RESPONSE TO THE WARNING OF THE SECURITIES & EXCHANGE COMMISSION OF NIGERIA In the news recently Securities & Exchange Commission in pursuance of their statutory duties issued a well-intentioned but I dare say misinformed warning to the general public about MMM being a Ponzi scheme and most recently making the news rounds is the purported report of the warning of Central Bank of Nigeria against the activities of MMM which was penned by one Obinna Chima of ThisDay newspaper on the 14th September 2016 edition. First as an aside, the CBN never issued a categorical statement against MMM. In fact, the quoted statement of its acting Director of Corporate Communications, Mr. Isaac Okoroafor never referred to MMM. The only mention of MMM was the subjective and unsubstantiated opinion of ThisDay newspaper’s reporter. CBN’s warning was against “wonder banks” and “deposit money institution” in other words CBN was warning against patronizing institutions that physically seek deposit of funds in a central account (or any account subject to their control) on the promise of high yield interest rates nothing more ( Here is the link to the original report at http://www.thisdaylive.com/index.php/2016/09/14/cbn-warns-nigerians-against-investing-in-wonder-banks/ for you to read it for clarity).

Consequently, I will not burn intellectual fuel in analysing the ostensible false warning attributed to CBN. Now to the SEC warning. As a legal practitioner of many years standing and as a prudent ordinary citizen like any other reasonably informed person my curiosity was pricked by SEC’s warning against MMM and that has led me to seek to understand the facts that will aid a reasonable conclusion. In my view the pertinent questions begging for answers are Who or what is MMM? Why are its activities illegal? And the what are the evidence proffered by SEC to support their allegation and disclaimer? Permit me I shall proceed in the manner of my training to examine the relevant facts. To arrive at a just determination of the issues raised it is pertinent to examine the statement of SEC and their supporting evidence or proof of culpability and then deconstruct the activities of MMM to see if it is guilty as charged. I will quote SEC’s statement: “The attention of SEC, Nigeria has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.).

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 percent. “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. “The general public is hereby advised to distance themselves from this online scheme. Please note that anyone that subscribe to this illegal activity does so at his/her own risk.” (underlining mine for emphasis) What is noteworthy is that MMM the subject is described as an online investment scheme, a mutual aid financial network which promises a monthly investment return of 30 percent. Note the reason SEC declares it illegal is that the unlicensed online investment scheme has not tangible business model hence it is a Ponzi scheme where returns are paid from other people’s investment. First it important to state that a monthly return of 30 percent on an investment is not illegal. So what makes the activities of MMM illegal under SEC’s regulatory purview? Simple. It is operating an unlicensed investment scheme with no tangible business model. So the question is, is MMM an investment scheme subject to registration with SEC? only an examination of the activities of MMM can reveal the answer so let’s examine MMM. MMM describes itself as a voluntary union or association of persons voluntarily providing financial aid or donating their spare money to one another with no obligation on the receiver’s part to pay back. Participation in the community does not give rise to a lender and borrower obligation. As an incentive to encourage the “voluntary giving or donation” the community rewards the giver with a 1 percent daily interest which accumulates or grows for 30 days hence the promise of 30% return. MMM operates no central structure or bank account to collect money. In fact, money is never paid to MMM, participating members directly pay the money to one another. MMM merely provides the platform and rules for such engagement and gets nothing in return because it is an ideologically based “people movement” organization which leverages on the power of freewill community giving as a gateway to financial freedom from the established financial institutions which propensity is to favour only the rich. Of significant note is that MMM clearly and explicitly warn participants on its site to only participate with their spare money (money they can afford to lose) as they stand the risk of losing all. and that there are no guarantees whatsoever as no member is under the obligation to repay any donation and MMM fully discloses that the expected 30 percent reward for donations is gotten from old satisfied members who continue to give or donate and also from the donations of new members joining the community nothing else. It states clearly that there no investment or any relationship with the capital market, no goods or products to sell, no obligation to refer or bring anyone to join and no requirement to make any number of donation. Nothing, just people giving each other money with no guarantees. SEC’s charge that MMM pays returns “from other people’s invested sum” with respect is ignorant and stems from a lack of understanding the workings of MMM. No participant is under any illusion as to how the 30 percent is obtained. It is from participants. Take it or leave it. I will now address the pertinent issues sequentially as they arose in SEC’s statement. First, it is important to note that the word “investment” has a technical meaning apart from the everyday ordinary meaning. Though under Investments & Securities Act 2007 the term “investment” was never defined the Second Schedule, Section 304 of the Investments & Securities Act 2007 however it stipulated broad categories and registrable activities like shares, stock, bonds, government and public securities etc. that constitute investment business in Nigeria. On the allegation of operating an “online investment scheme” I do not see how any of the activities of MMM which is essentially freewill giving described above fit under any of the categories or activities under the Second Schedule of Investments & Securities Act 2007. I must say no matter how broadly interpreted this section cannot co-opt or designate “freewill or voluntary donation or giving” as an investment. It will be most absurd and illogical. For academic postulation sake, assuming without conceding the least that MMM activities can be described as an investment under Investments & Securities Act 2007 it is even doubtful if SEC’s has the powers to regulate an “online investment scheme” whose computer server or origin is based outside Nigeria. It will be a legal nightmare and a complex watery grave of conflict of laws to navigate even for the best legal team. Secondly, on the charge that its operation is not registered by SEC, I must say that SEC lacks the power to registered or regulated online investment schemes.

However, MMM as a voluntary association of whatever complexion whether as a mutual aid society or a social network of financial aid (call it whatever you like) is guaranteed the freedom of association under the 1999 Constitution of the Federal Republic of Nigeria (as amended) thus the requirement to register with Sec is non-sequitur, it’s a none starter. It is irrelevant where MMM engages in a non-regulated activity like voluntary donation among members. Members of MMM also have the freedom and indeed the right to own and dispose of their property which include their money in whatever manner they deem fit. This is a right to private property guaranteed by the 1999 Constitution (as amended). And to the best of my knowledge it is not illegal under Nigerian Law to give or make a donation of your money to a charitable cause or to any cause not explicitly declared illegal and you don’t need a license for that, thus it will be futile to label the freewill giving in MMM illegal. Thirdly, on the charge of MMM being a Ponzi scheme, let juxtapose the features of a Ponzi scheme and the activities of MMM. A Ponzi scheme in essence is a clever investment scheme which lure people to invest in a supposedly legitimate business with a promises a high yield interest rate for the investment. In a Ponzi scheme the scam artiste relies on the inflow of cash to its central account from new members to satisfy old members and to maintain a façade of prosperity in order to continue entice new members. This in the long run is unsustainable and he disappear with the cash leaving people broken. Note that in a Ponzi scheme members trust and give their money to “investment guru” to make them more money from opaque transactions. In all instances of Ponzi schemes there is a central account where money is paid to (show me one that does not have a central account?). This makes it easy for the scam artiste to bail with the money of members. In MMM members are told clearly that there is no investment or any relationship with the capital market, no goods or products to sell, no business to invest in, no obligation to refer or bring anyone to join MMM. Nothing, just people giving each other money with no guarantees. There is no central account to pay money to. Members directly share their money with each other. Members understand that money is gotten from but old and new members donating. Nothing more. Nothing less. What can be more transparent? Member of MMM knowingly and willingly accept he associated risks of their participation. Now I ask how is this a Ponzi scheme? It is not. Yes, MMM defies logic but that does not make it a Ponzi scheme. If it is, SEC failed to provide the damming proof. A mere wishy-washy warning statement does not cut it for a serious minded regulatory agency like SEC. Another important consideration is who is complaining? It is hard not to notice the comments online which typifies the wave of support MMM enjoys from millions of Nigerians who are benefitting from it.
SEC’s perception of the organization is fundamentally flawed as it erroneously describes MMM as an investment which it is not. The activities of MMM described above does not fit under any of the categories or activities under the Second Schedule of Investments & Securities Act 2007. I vaguely suspect SEC never carried out any proper investigation of the activities of MMM before rushing out a warning statement. It must have been manipulated by some overbearing interests whose jobs are being threatened by the ideology of MMM which is catching on like wildfire. I know that in this discourse only time and superio r proof can be the final arbiter but before then SEC don’t sell me your reputation. I am a man of full baseless accusa intellect. Take tions on the platter of your it from me MMM is not a scam. It is a revolution. I stand to be counted me as a member.
Signed 17/09/20 1 6
Ataguba S. Aboje, Esq,
Abuja
08098667600.

Nice one..

mmm is a revolution. Its real. I can testify to that. mmm is changing my life.

Gbam!

WTF! Is the full meaning of MMM.

Nobody says it. Yall just ranting up and down. The first day one guy told me 'bout this, i told him it was a scheme that won't hold for long. And i haven't even heard bout it before! Any smart person would know this. The structure isn't one built to last.

what do you mean "money you can afford to lose?" does any such money exists?.

Like it or not. Every money put into this sham is an inverstment! I told the guy, make the most you can out of this sh!t now cus one day it would collapse! And trust nigerians. Natural con artists. Ready to milk the loopholes.

This lawyer is not ready to lose his money yet from desensitization. Black on Black crime. We don't have the morals to engange in this. No one does. But if i do have the "money to lose" i would INVEST in this, knowing its gon collapse later. F'cK outta here!!


https://en.m.wikipedia.org/wiki/MMM_(Ponzi_scheme_company)

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No be only the negative news una go carry go FB

Benefits of MMM to Nigerian Society.

(1) MMM has created room for more Data Plan purchase. Glo. MTN. Etisalat. Airtel.

(2) MMM has also created an avenue for Banks to make more money. The transfer we the MMM members do with our mobile banking and also direct payment in bank. We are been charged #105 as the case maybe. For each transfer. So you see that banks are benefiting.

(3) MMM members buy things in the market very often. The market woman are able to sale their food stuff. Even Fast FBenefits of MMM to Nigerian Society.
(1) MMM has created room for more Data Plan purchase. Glo. MTN. Etisalat. Airtel.
(2) MMM has also created an avenue for Banks to make more money. The transfer we the MMM members do with our mobile banking and also direct payment in bank. We are been charged #105 as the case maybe. For each transfer. So you see that banks are benefiting.
(3) MMM members buy things in the market very often. The market woman are able to sale their food stuff. Even Fast Food, Restaurant are booming all because of MMM.

(4) MMM has also educated the society and its member through Seminars. Let people know that one most not suffer so much to get paid. Creating avenue for people to learn computer, To be able to P.H and G.H.

(5) MMM has Crown it all by giving back to the same society that Benefits from it. Example are Charity organization are been set up. Orphanage home visitation. Taking care of Burnt Victims. Just to mentioned but few.

(6) MMM has been able to engage the minds of young and the unemployed, and has given them courage to withstand this harsh period of recession.

(7) For the civil servants' in this period of delayed salaries payment, MMM system has sustained them and has never delayed payment nor owed.

(cool for Nigerian students of Tertiary institutions MMM has been able to provide them feeding money, pocket money, money for book,school materials and even tuition etc. Thereby helping them to have better college life.

(9) MMM has been able to bridge the gap between the upper and lower class individuals of the Nigerian society by creating an avenue for everyone to meet basic needs.

(10) reduction of cyber crimes. MMM has motivated
Nigerian citizens that instead of defrauding pple online to make money that they should Rather PH and GH and that way no one is hurt.

(11) MMM has further enhance fairness, care and national unity. In the spirit if PH and GH we do not choose ourselves who to help but the system does' that way encourages to help our fellow country men/women.

(12) MMM has helped Nigerians to be conscious, and thereby killed dat spirit of africa man time. As d system has shown us dat time is of essence.@ ph & GH.
The list can go on as d benefits are enormous and cannot be over emphasized.

Therefore the SEC and FG we do not need to fight the system that is helping us in several ways. Is like biting the finger that feeds u. If u haven't benefited directly' certainly u know someone that has. MMM has come to stay. MMM Is d change we need, Truly MMM pays.

Together we can change the World.

For further information about testimonies , how it works, and registration call/whatsapp: 08095387058

There is a popular saying that, "an eye for an eye would sooner or later leave the whole world blind." That is a case of any pyramid venture. When money is collected from one person to pay another in excess of the original amount, who pays the the last person or group of persons, especially when the money is not invested to yield the interest? It will get to a point where the stack of card cannot stand. Except this is a different MMM, but from what I read on Wikipedia, the MMM which originated from Russia and coined its name from the first letters of the of names of the three founders seems to have credibility issues. The Wikipedia source gave a listed of countries where they have operated and had serious issues with the authorities. There is also an instance of one of them being sentenced in one of the countries.

Let do a simply maths based of the 30% monthly interest;

Starting with an initial #100k

if the first above person gets #130k

The owner of the #130k must get #169k

next #169k must get #219.7k

Next #219.7k must get #285.61k

Next #285.61k must get #371.29k

If we were working with millions, at this last step, already the organization would be looking for someone to come up with a whooping #856800! to settle the previous person.

Remember, this scenario is just for a single flow (in hundred thousand). When it runs into millions, the interest will also increase accordingly and in addition to the different multiple flows from the many "investors." The question is, will all the money in Nigeria sustain this? Given all the money in Nigeria, this is not sustainable.

https://en.wikipedia.org/wiki/MMM_(Ponzi_scheme_company)#cite_note-6

sonnie10:
There is a popular saying that, "an eye for an eye would sooner or later leave the whole world blind." That is a case of any pyramid venture. When money is collected from one person to pay another in excess of the original amount, who pays the the last person or group of persons, especially when the money is not invested to yield the interest? It will get to a point where the stack of card cannot stand. Except this is a different MMM, but from what I read on Wikipedia, the MMM which originated from Russia and coined its name from the first letters of the of names of the three founders seems to have credibility issues. The Wikipedia source gave a listed of countries where they have operated and had serious issues with the authorities. There is also an instance of one of them being sentenced in one of the countries.

Let do a simply maths based of the 30% monthly interest;

Starting with an initial #100k

if the first above person gets #130k

The owner of the #130k must get #169k

next #169k must get #219.7k

Next #219.7k must get #285.61k

Next #285.61k must get #371.29k

If we were working with millions, at this last step, already the organization would be looking for someone to come up with a whooping #856800! to settle the previous person.

Remember, this scenario is just for a single flow (in hundred thousand). When it runs into millions, the interest will also increase accordingly and in addition to the different multiple flows from the many "investors." The question is, will all the money in Nigeria sustain this? Given all the money in Nigeria, this is not sustainable.

https://en.wikipedia.org/wiki/MMM_(Ponzi_scheme_company)#cite_note-6

Sorry you have no idea how mmm works. Just allow us enjoy mmm in peace biko.
When leky got flooded many poor people thanked their stars that they didn't have homes in leky, lol. They saw only the challenges,blind to all the years of benefit, lol.

Long live mmm

Insightful. and very Educating, join MMM today and Be Financially free. Call me 08083171337

or join the whatsapp with this link.


https:///LtU8H396eql5Y63A9RFWoY

and ask any Question related to MMM

Whoever has anything to say against MMM should reply this lawyer.

Kizito Bauer, I repeat, I no do.


You hear?

sonnie10:
There is a popular saying that, "an eye for an eye would sooner or later leave the whole world blind." That is a case of any pyramid venture. When money is collected from one person to pay another in excess of the original amount, who pays the the last person or group of persons, especially when the money is not invested to yield the interest? It will get to a point where the stack of card cannot stand. Except this is a different MMM, but from what I read on Wikipedia, the MMM which originated from Russia and coined its name from the first letters of the of names of the three founders seems to have credibility issues. The Wikipedia source gave a listed of countries where they have operated and had serious issues with the authorities. There is also an instance of one of them being sentenced in one of the countries.

Let do a simply maths based of the 30% monthly interest;

Starting with an initial #100k

if the first above person gets #130k

The owner of the #130k must get #169k

next #169k must get #219.7k

Next #219.7k must get #285.61k

Next #285.61k must get #371.29k

If we were working with millions, at this last step, already the organization would be looking for someone to come up with a whooping #856800! to settle the previous person.

Remember, this scenario is just for a single flow (in hundred thousand). When it runs into millions, the interest will also increase accordingly and in addition to the different multiple flows from the many "investors." The question is, will all the money in Nigeria sustain this? Given all the money in Nigeria, this is not sustainable.

https://en.wikipedia.org/wiki/MMM_(Ponzi_scheme_company)#cite_note-6

U r an mmm illiterate get educated abt d program nothing like single flow. Mmm Nigeria is approaching a million participants and not yet a single participant complaining since January 2016 ie 9months n counting.

It takes 24hrs to withdraw ie get help and up to 45day to provide help BC of long queue of Nigerians begging n willing to invest or PH but not many asking for help. These r still early days if at all it will collapse nt in the foreseeable future

Nw listen carefully it takes abt 3 months to break even in d program thereafter u have absolutely nothing to lose. Got dt nw, u must take risk to move your life forward

Mmm pays

ogawisdom:


U r an mmm illiterate get educated abt d program nothing like single flow. Mmm Nigeria is approaching a million participants and not yet a single participant complaining since January 2016 ie 9months n counting.

It takes 24hrs to withdraw ie get help and up to 45day to provide help BC of long queue of Nigerians begging n willing to invest or PH but not many asking for help. These r still early days if at all it will collapse nt in the foreseeable future

Nw listen carefully it takes abt 3 months to break even in d program thereafter u have absolutely nothing to lose. Got dt nw, u must take risk to move your life forward

Mmm pays

Ask yourself this question, what good does an ex-con from Russia has to offer? Encouraging people to invest in something that is certain to collapse someday is worrisome. Listen to yourself carefully; what you have said is that, it is working because it is still the "early days." But you failed to understand that every system seeks to maintain equilibrium. Listen to yourself carefully in the bold above; there you will get the critical point in this issue. The question that remains unanswered is, what plans are in place when the reverse becomes the case - more
people asking for help than those investing? That is the time Nigerians should be worried about, because then the bubble will burst any many will commit suicide.

sonnie10:


Ask yourself this question, what good does an ex-con from Russia has to offer? Encouraging people to invest in something that is certain to collapse someday is worrisome. Listen to yourself carefully; what you have said is that, it is working because it is still the "early days." But you failed to understand that every system seeks to maintain equilibrium. Listen to yourself carefully in the bold above; there you will get the critical point in this issue. The question that remains unanswered is, what plans are in place when the reverse becomes the case - more
people asking for help than those investing? That is the time Nigerians should be worried about, because then the bubble will burst any many will commit suicide.

Mr man I said there are far more PH than GH ie if u will ever understand what that means, PH is the live blood of mmm d4 it is safe to invest nw ie if ur money will even be collected b4 45 days BC of the long queue of Nigerians begging to invest nw.

Nw hear this even commercial banks are closing every nw and then, every biz will close when there are no more customers including mmm n mama ngozi restaurant, mmm will definitely close someday but not anytime soon, so enjoy it while it lasts or watch while risk takers smile to the bank Monthly.

Mmm is for risk takers who has some money they can risk losing

[quote author=sonnie10 post=49521435]

Ask yourself this question, what good does an ex-con from Russia has to offer? Encouraging people to invest in something that is certain to collapse someday is worrisome. Listen to yourself carefully; what you have said is that, it is working because it is still the "early days." But you failed to understand that every system seeks to maintain equilibrium. Listen to yourself carefully in the bold above; there you will get the critical point in this issue. The question that remains unanswered is, what plans are in place when the reverse becomes the case - more
people asking for help than those investing? That is the time Nigerians should be worried about, because then the bubble will burst any many will commit suicide.



And what if the ex con is better than the morally bankrupt crop of leaders in our country most of whom should be in, about completing and already out of jail.

The ex con brought a life saving idea from the jail, what really sound and working idea has our thieving leaders brought forward to salvage the economy?

Early stage, equilibrium or not, what is there that lasts forever? Recently the CBN salvaged Skye bank - that was fine because it's regulated but no one asked what led to the bank rescue, the memories of intercontinental bank, oceanic bank and finbank are still fresh, please were the authorities dead while the bank officials collapsed the banks?

Nigerians have the right to spend their money on what they feel will be of good to them and if it fails, it shouldn't be to anyone's joy as any business can go underwater, Savannah and societe general bank failed, it's directors are walking free today, SEC and CBN were alive back then.

Some prominent Nigerians claimed unclaimed dividends from the stock market under the nose of this same SEC, none was punished for any foul yet they are here to say mmm is bad as its not registered with SEC,

So if anyone is interested in anything they feel is fine for them and they aren't of security risk to anyone, and not of any inconvenience to others and can help them turnaround financially, they are free.

SEC and anyone should not cry, as they aren't feeding anyone, not employing anyone, they should not try to be the good shepherd.

For now I repeat MMM is adding value and making sense, it's free to join with SPARE MONEY.

Strongedition:




Sorry you have no idea how mmm works. Just allow us enjoy mmm in peace biko.
When leky got flooded many poor people thanked their stars that they didn't have homes in leky, lol. They saw only the challenges,blind to all the years of benefit, lol.

Long live mmm

I'm interested. But can you please shed light on the source of the 30% monthly ROI as posited by @sonnie10?

Strongedition:




Sorry you have no idea how mmm works. Just allow us enjoy mmm in peace biko.
When leky got flooded many poor people thanked their stars that they didn't have homes in leky, lol. They saw only the challenges,blind to all the years of benefit, lol.

Long live mmm

laugh..... you don't need to waste ur strength typing to convince any1, Even till Now some Rookies still dnt blve God existed, so blvng MMM to them is an illusion.

long live MMM,
foe more info abt mmm

interested mind alone should call 08083171337.

MMM is real, ask for guide on +2348062442281

What an incisive analysis about MMM. I stdnd to be counted too as a proud member of MMM. MMM will continue to work as long as PH and GH continues. It is not by force to join. If you cant join just keep your mouth shut instead of discouraging people.

There is no central account.

People who are interested in raising and providing funds are being linked to access mutual funds with 30% increment over the amounts they have given as financial help

watsapp +2348028833709 or checkout http://rexylonlinestore..com.ng/2016/08/mmm-global-financial-network.html?m=1for details

I need an investor in my fashion retail business, contact me for the returns and legal bindings
bawosokanre@gmail.com/ bawosokanre@yahoo.com

Am here to give free whatsapp tutorial/ daily mentorship on how to participate on MMM safely.
I emphased on safely because I know sizeable number of people skeptical about the program are because of their fair. Yes, that is normal but I am assuring you that I will let you see that the fair is illusion. Afterall the risk is just for 1day to 3 week (depending on how lucky you are for the first match), if you keep with my rules and procedures. You can even test with any amount between #1000- 3.5milllion.
To me MMM risk is even lower than some business, so far you are not greedy. First time is sufficient to gain your ground and continue participating with your earning.
Earning after first PH is (1.30 X the amount) + $20 or $50
Benefit you will gain from the tutorial
1. Free guide on registration. I Can even register for you and you change password at your end (if wishes)
2. Guide on safe trading on it
3. Notification of your status (eg when your order is out), so far you are my downline
4. Guide on providing solution to issues (if any)
Question and Answer section
***Please only those that are yet to register and are ready to register are welcome
Just send me message with the statement “MMM + your name”
Whatsapp/Telegram: “Zero” 8 “Zero” 34556519

I prefer mim