The Securities and Exchange Commission has raised the alarm over the activities of some online fraudsters, who are currently running an online investment scheme tagged ‘MMM Federal Republic of Nigeria’.

The fraudsters, according to SEC, carry out their illegitimate business via Nigeria. portal/platform, and are promising investors a monthly investment return of 30 per cent.

SEC said the venture had no tangible business model, describing it as a Ponzi scheme, where returns would be paid from other people’s invested funds.



Investopedia.com describes a Ponzi scheme as 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 on its website, said, “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 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, advised the general public to distance themselves from the online scheme, adding, “Please note that anyone that subscribes to this illegal activity does so at their own risk.”

In a related development, SEC said its attention had been drawn to the activities of one Mrs. Oge C. Ottiwu of No. 118 Zink Avenue, Opposite Eke Market, Awka, Anambra State, allegedly engaging in capital market activities without any registration within Anambra State and its environs.

“Section 38(1) of the Investments and Securities Act, 2007 requires any person who intends to operate as a professional in the capital market or carry on securities business to be registered by the commission before engaging in such activities. It is therefore illegal to carry on any kind of capital market business without registration,” it said in a post on its website.

mckoolcharming:
as I dey post I just received my pay for
MMM...... mmm is for real I swear

ochuski:

Read d post.. Dey dint outrightly say its fraud n dey dont pay people. . What dey said is dat d activities of MMM are conspicuous because dey are not dully registered and should incase your money get missing in d future, u are to blame.

mckoolcharming:
as I dey post I just received my pay for
MMM...... mmm is for real I swear

tuniski:


Wake up it is a fraud! They collect other People's cash to pay those who are older with them, immediately new mugu are not joining they will collapse!

wordcat:


This is what SEC said; The venture had no tangible business
model, describing it as a Ponzi scheme, where
returns would be paid from other people’s
invested funds.

mckoolcharming:
as I dey post I just received my pay for
MMM...... mmm is for real I swear

wordcat:


This is what SEC said; The venture had no tangible business
model, describing it as a Ponzi scheme, where
returns would be paid from other people’s
invested funds.

mckoolcharming:



If only they will admit that banks are ponzi scheme, then I will agree that MMM is a ponzi scheme.

1. MMM is not an Investment program. We are helping ourselves to be financially free. The government has failed us and we have decided to help ourselves

2. MMM does not collect our money. We pay directly to other people's account.

3. MMM is not a company, as such, there is no point registering with SEC.

4. Is there any law in this country forbidding us to help our brother? If there is, then you can shut us down

5. If the government begins to gives us 24hours electricity, pay a minimum wage of NGN200,000 per month, employs everyone that is unemployed, then we can consider leaving MMM

ochuski:

Read d post.. Dey dint outrightly say its fraud n dey dont pay people. . What dey said is dat d activities of MMM are conspicuous because dey are not dully registered and should incase your money get missing in d future, u are to blame.

ochuski:

Abi?.. I know ur type for school...copy n paste
Better go study medicine or pharmacy.

Abeg i no dey do like dat.. i read, i decipher n push it out d way i understand it.. Am an Entrepreneur.

Joel3:
mmm is not a business organization or cooperate investment platform and therefore cannot be registered under any government monitory or tax laws.

mmm is a social organizations base under the platform of social help or demotion. people help each other. and I think they made it clear that it's not an investment platform.

there is nothing like scam there the only thing there is that it will definitely crushed. it's not a business but circular donations. the ponzi schemes is investment platform. although the similarity is the same.

as long as there are new people joining and helping each other the thing will keep going round. the sad part is that it will cut down business activity in the country to some certain %. as people putting their money in the scheme.

how its going to crashed? when people stop joining or stop putting their money. then their will be less donor who want to help and high receiver who want help. then it will crashed.

tuniski:

It is your money u are free to do whatever u want with it just don't cry when the bubble burst. A similar scheme was run in abuja a few years ago. I still remember how the late joiners completely lost everything!

Joel3:
mmm is not a business organization or cooperate investment platform and therefore cannot be registered under any government monitory or tax laws.

mmm is a social organizations base under the platform of social help or donation. people help each other. and I think they made it clear that it's not an investment platform.

there is nothing like scam there the only thing there is that it will definitely crushed. it's not a business but circular donations. the ponzi schemes is investment platform. although the similarity is the same.

as long as there are new people joining and helping each other the thing will keep going round. the sad part is that it will cut down business activity in the country to some certain %. as people putting their money in the scheme.

how its going to crashed? when people stop joining or stop putting their money. then their will be less donor who want to help and high receiver who want help. then it will crashed.

wordcat:


Try harder next time Mr. Entrepreneur.

mckoolcharming:



So far so good what benefit has the fellow Nigerians gotten from the government?? What MMM has done to the life of Nigerians, The government haven't done that for years..... It is our Money, MMM clearly stated their Risks, we accept.. We weren't forced to join. Leave it for us its not Scam.... Infact our leaders are the Scammers cause we vote for them yet we the masses suffer while they keep embezzling our funds...

mckoolcharming:


MMM IS NOT a Ponzi Scheme, cos in a Ponzi scheme, old members don't put back their money.

IN MMM, BOTH OLD AND NEW MEMBERS CONTINUOUSLY PUT IN MONEY BEFORE THEY CAN BE HELPED SUBSEQUENTLY.

ochuski:

Naa... U need to try harder bro cus with ur skill, i like to employ you.. So try n beat d competition nd i'll fix u in

Joel3:


I would advice you read my post again. I am not against MMM or it participants. the threats or danger to our economy is that it collapse business activities.

money is no longer circulating. a circle of money is been going round from bank to bank. rather then capital projects to the economy.

PaulIdu:


Mr man what are you guys creating wealth from? It's a textbook example of a Ponzi scheme and a weak one at that..have you heard about the perpetual motion machine concept ? That's what this is ..a gathering of very dull people who are desperate to create wealth from doing absolutely nothing till they get scammed

niggi4life:
The question is simple, MMM gives you 30% after a month? Even no bank can give you that high ROI(return on Investment) Now how do they make their own profit? i am just curious

Joel3:
read the ponzi scheme.

the money is a fake liquidity. and not capital. everyone knows liquid investment is of high risk unlike capital.
as long as people don't cash out the same time it will remains. just like bank if every withdraw their money from the bank the bank well collapse. but that of bank they goes into capital investment with people's money.

but mmm stays idle doing nothing that makes it a perishable liquidity.

Joel3:
shut up. as I said before it's not a scam.

it's a simple logic. but it's a threat to our banking sector and the economy. the money is in circle between the banking chain and growing rapidly for doing nothing. it will hurt down our very own economy like recession.

the prosperity is a fake prosperity.

niggi4life:
you are still speaking chinese, simple question, how does MMM make their own profit since they don't accept those money, rather people send this money to each other?