Breaking: EFCC finally declares war on MMM, Others

Economic and Financial Crimes Commission (EFCC), and the
Securities and Exchange Commission, (SEC), on Thursday in Abuja vowed to clamp
down on fraudulent operators using Ponzi schemes in the Nigerian capital
market.
The development signals onslaught against promoters of Ponzi
schemes like Mavrodi Mondial Movement (MMM), Get Help Worldwide, among others.
Ibrahim Magu, acting
chairman, EFCC, and Mournir Gwarzo, his SEC counterpart, made the pledge while
signing a Memorandum of Understanding (MoU), for cooperation at the EFCC head
office, Abuja.
The collaboration will
see the EFCC provide law enforcement muscle to give bite to SEC’s regulatory
mandate in the capital market.
Speaking, Magu stressed
the need for both agencies to “pool resources together” in dealing with the
menace of Ponzi schemes, which many Nigerian were currently at their mercy.
Gwarzo, on his part
declared that the signing of the MoU will send a strong warning to fraudsters
added that, “any operator of the capital market that crosses the red line will
certainly be dealt with”.
Recall that the
Securities and Exchange Commission, SEC, had issued warnings against Ponzi
schemes.
SEC said: “The attention
of the Securities and Exchange Commission, Nigeria (“SEC”) has been drawn to
the activities of an online investment scheme tagged ‘MMM Federal Republic of
Nigeria (nigeria.mmm.net). 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%”
“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”.

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