The Securities and Exchange Commission, SEC, 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.
A Ponzi scheme can be defined 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.
Investigation by The Brief revealed that MMM has been banned in Russia, China, and South Africa.
In January 2016, the Chinese government, through its Central Bank and other sources, warned its citizens to stay away from the MMM programme, saying that MMM China (the local version) is a scam.
In a similar development in South Africa, also in January 2016, the bank accounts of an investor in MMM Global were frozen for violating the Consumers’ Protection Act.
The founder, Sergei Mavrodi, is a convicted felon.
Credit: TheBrief
http://www.thebriefng.com/2016/09/01/stay-away-mmm-ponzi-scheme-sec-warns-nigeria/
View Comments (29)
This is to officially announce to all MMM members around the world that we are currently updating our website for 50% upgrade that will lead to 2017. We are sorry for the inconveniences, for more information call MMM help center with the following number +2348158826526. Thanks for your understanding.
SEC or what is it called. What have you people as an organization done to a the less privileges ? the common man is suffering day in day out you people are there enjoying yourselves. Nigeria as a country has its own risks economic recession the down turn of our country economy we are hearing today is whose risk? sec as an organization has its own risks all of us are risk takers. You can't be successful in life without taking risk. Nothing last for ever in this earth we are .I may ask why can't you stop people from dying? Cause is a risk to life. Bokoharam are killing inocent souls Fulanis killing people , militantancy kidnapping are the other of days.pls I don't want to say so many things here but leave us alone with our usual risk. Is non of your business.
Don't mind them. They are idiots.
Hahaahahahaha,.....Do i tell you that i do not know its a risk Oga? If its a risk its my decision to take it not yours ooooo,.....MMM is my pride,......I Rep MMM,.......MMM all the way
We mmm participant are even making the bank #105 naira richer everytime we make transfer so CBN should shutup infact my message to CBN invest half of Nigeria economy into mmm and get 30% of it to better Nigerians lives
Please confuse me that the banking system is not a scam, what do you want to talk about, is it the charges they withdraw for transfer via internet banking, mobile app or ATM, Let's talk about the SEC as a whole they are sammers too, mmm came in to change people's live in your country and you emeny of progress and talking nonsense to shut it down, mmm is bettering lives my friends, I resigned from work because when in started mmm I realise that my company can't pay me anything thing close to 30% so tell me who u epp, mmm has made changes in my life am now a better me, you guys should join and see maybe your lives wouldn't change from this rubbish to better, just shutup and do the right thing. Government shit. Togetger we can change the world long live mavro
SEC and other BANKS are crying foul because they perceive MMM to be a threat to their very Good existence. MMM has come to stay as a community that stands for the truth.
MMM is paying and real also and I am a witness to that.
They SEC should know that MMM is not a company, investment or banks rather, MMM is an online social financial network of people who decided to help each other financially. And there is no place in the constitution that forbids people from helping each other.
LONG LIVE MMM AND TOGETHER WE WILL CHANGE THE WORLD.
MMM Community Stand Firm and Be Unmoveable and Undaunted! !!!
We Would Change the World !!!!
*Is MMM really a scam?*
Is it a scam to have a system that
*brings a community of people together that financially help one another, willfully, without being forced?*
Is it a scam to have a system that
*creates a platform for individuals to combat poverty at its core?*
We always say fighting poverty is a collective effort;
Now instead of people *stealing*, *cheating* or *robbing they join their hands in good heart to provide financially help to one another*, is that scamming really?
Is it a scam to see *families that couldn't afford to bring food on the table* now able because of the financial help they have received from other members? Is it a scam to see
*students who couldn't afford to have pocket money and monthly allowances in tertiary institutions now able to afford* because of MMM?
Is it a scam to see *entrepreneurs rising from the capital money raised through MMM and in return they contribute to the economic growth of this country and create employment to thousands?*
I will tell you what a ~*SCAM*~ is!!!
?A real scam is to _*hinder people to their financial freedom yet encourage them to keep borrowing from your system so that they work for you and pay the rest of their lives if they live that long*_...
?A real scam is to _*have someone work 40 years of his/her life and after retirement that person must take the fruit of his/her years of hard labour and pay the debts and bonds that refused to end because of ever increasing interest rates.*_ ?A scam is _*when your bank sends you an sms alert to inform you that you have earned #0. 50 on your money, and later charge you #4. 00 on the sms alert. Your bank also charges you exorbitantly every month on something you know nothing about ; and there's nothing you can do other than to keep quiet because you have no choice.*_
?A scam is when _*~your mobile network provider charges you on the service you never make a request for (caller tunes, news updates, etc)~*_
? _*~Working for a government and being paid the same salary as when 1 Dollar was N165 till now~*_ is a scam.
?_*~Working for government for years without promotion~*_ is a scam.
? _~*Working for so long and just getting a sack letter or retiring broke and in debt*~_ is a scam.
? _~*Serving your country for one year and crying to get a job*~_ is a scam.
? _~*Not being paid salaries for 5 months or more*~_ is a SCAM.
? _~*Not being able to transfer your job to your children*~_ is a SCAM.
? _~*Spending 6 years in Primary school, 6 years in Secondary School, 4, 5, 6 years in Higher Institution, 1 year Internship (for some) 1year of NYSC and at the end you still roam about looking for non-existing job*~_ is the REAL Scam.
Meanwhile someone somewhere is enjoying financial freedom, making millions, driving brand new cars e.t.c
_*All in joining MMM without submitting CV, NYSC discharge Certificate etc*_....and people still say it's a *SCAM?*
Is it therefore a scam *to have a system that produces people that can afford to buy a house they could have paid for _20 years_* in cash had such a system not been introduced? _*Is MMM a scam?*_
You can make your own judgment as to who a _*REAL SCAMMER IS*_
??????_*MMM*_??????
Together We Are CHANGING The World For Good of All
Congrats
I want all financial institutions to explain what is “fractional
reserve banking”. Is fractional reserve banking in itself not a scam by
financial institutions which include SEC members business model and
activities, because you use money which is not yours sometimes without
the consent of the owners of these money under their custody and lend it
out on high interest rates and give the original owners little for
their own money. We are aware that many CEOs and stakeholders of
financial institutions are behind this, they are using SEC as an avenue,
but Nigerian are wiser by the day.
SEC are crying because nobody wants to invest in shares, bonds, treasury bills and
all what have they, tell me while should people invest in those product
when at the end of the day these so called registered entities as
believed to be regulated by SEC still cant manage peoples investment
with them and also with low returns on investment. We have seen how SEC
has failed Nigerian; most shares in Nigeria has lose value to nothing
still under the watch of SEC and the irony of this whole thing is that
the CEOs and stakeholders of these institutions are still sharing
profits among themselves, taking trips overseas with their families as
though nothing has happen and now they can’t have profit and benefit
since people no longer wants to buy their product anymore hence they are
calling MMM a scam. Have you not been receiving SMS or emails from
banks and most of these financial institutions lately asking you to save
some money with them and qualify for some kind of promo, have you ever
seen anyone that has won these promo. They are actually trying to
generate capitals for their selfish interest. Bottom line is when they
fail out of their incompetency and people loose their hard earn
investments they look for what to blame it on, this is thief on
investors and tax payers and if this is done by ordinary person they will
go to jail for it.
It is their lack of knowledge of what a ponzi scheme is and how MMM
operations are hence they call MMM a ponzi scheme. MMM is not a ponzi
scheme and her operations can never fall under a ponzi scheme.
When people get involve in cooperatives or if you may call it “Osusu”
and what ever activities that they do to better all members of their
cooperative do they have to involve SEC or register with SEC? MMM is a
state-of-the act Osusu or cooperatives as you may call it. Because if
SEC cant regulate other and every cooperatives or osusu groups that
operations in Nigeria then they can’t regulate the activities of MMM
because MMM fails in this like. So when i want to render help to my
friend as most of us even give friends money to do business and ask for
some interest with it, we should get SEC involved and or go to the
capital market?
I have asked and have gone through the laws as covered by Nations and
also Nigeria, and i have not seen where being a philanthropist is
illegal, because if it is all philanthropist all over the world and in
Nigeria would have been call fraudsters, may be in this case “Offline
Fraudsters”
Instead of SEC and the Government of the day to be happy that
Nigerian have find means of livelihood since they have failed to secure
her citizen by providing for them, they are there calling scam when they
themselves are the scam and fraudsters. Has this Government not made
promised that they have not kept is that not a Scam of a sort.
SEC and FG, you can’t continue to keep people in slavery with you financial system.
Nigerian shine your eyes what has SEC or financial institutions done
for you rather your investment with them is reducing in value by the
day.
That is the problem with regulatory agencies in this country, they will ignore what should be done to improve the life of the common man and be running errands for their chess masters. I am a medical doctor, and with MMM I have been able to invest in something profitable outside my professional job which doesn't give me spare time. Every one who invests in MMM understands how it works, so SEC should not make it sound like they are here to help anybody. MMM still pays, and will keep paying.