TheNewsGuru

Tag: Ponzi Scheme

  • SEC reveals latest Ponzi scheme in town, warns Nigerians against investing

    SEC reveals latest Ponzi scheme in town, warns Nigerians against investing

    The Securities and Exchange Commission (SEC), has alerted the investing public that a firm known as Poyoyo Investment (Pilvest) Nigeria Limited is a Ponzi scheme, a front to defraud unsuspecting investors.

    In a circular at the weekend, SEC stated that its attention had been drawn to the electronic and WhatsApp messages being circulated to investors on behalf of Pilvest.

    According to the Commission, the electronic message indicates a proposal to investors to invest in guaranteed investment plans of either a minimum capital of N100,000 being invested for a period of one month with a returns on investment (ROI) yield of 20 per cent or a minimum capital of N300,000 being invested for a period of three months with a monthly ROI yield of 23 per cent monthly “and total ROI yield is 69 per cent” or a minimum capital of N500,000 being invested for a period of six months with “a ROI yield of 25 per cent monthly and total ROI yield is 150 per cent” or a minimum capital of N1 million being invested for a period of one year with a “ROI yield of 30 per cent monthly and total ROI yield is 360 per cent.

    “Besides the obvious errors in the returns calculations above, preliminary investigation has revealed that Poyoyo Investment (PILVEST) Nigeria Limited is purely a Ponzi scheme as it is a non-sustainable business model that involves the collection of money from unsuspecting investors with a promise of high return without any underlying assets.

    “The Commission hereby notifies the investing public that Poyoyo Investment (PILVEST) Nigeria Limited have no tangible business model; hence it is a Ponzi scheme where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission.

    “In view of the above, the general public is hereby warned that any person dealing with the named company in any capital market related business is doing so at his/her own risk,” SEC stated

  • BREAKING: EFCC nabs Lagos ponzi scheme operator in Sokoto

    BREAKING: EFCC nabs Lagos ponzi scheme operator in Sokoto

    The Economic and Financial Crimes Commission (EFCC) says it has arrested a Lagos State based ponzi scheme operator identified as Omotade-Sparks Amos Sewanu.

    According to the EFCC, the suspect, who operated the Inks Nation Ponzi Scheme, was arrested in Sokoto State by the zonal office of the Commission in the State.

    “The suspect who had been at large, was finally arrested on Thursday May 27, 2021 and has made useful statement,” the EFCC stated.

    TNG reports Sewanu was declared wanted by the EFCC in a case bordering on obtaining by false pretence, names-dropping and fraud to the tune of N32 million while claiming to have floated an online digital currency called “Pinkoin”.

    He fled No 19, Posukoh Quarters, Via Joseph Dosu Way, Badagry, Lagos State for Sokoto after the anti-graft agency declared him wanted.

  • Hollywood actor, Zach Avery, detained for alleged Ponzi scheme

    Hollywood actor, Zach Avery, detained for alleged Ponzi scheme

    American actor Zach Avery was detained by FBI agents in Los Angeles on Tuesday for allegedly masterminding a Ponzi scheme that swindled investors of hundreds of millions of dollars, US authorities said.

    Avery, whose real name is Zachary Horwitz, told investors his company 1inMM Capital would buy film distribution rights and license them to Netflix and HBO but in fact had “no business relationship with either company”, according to the Securities and Exchange Commission.

    Instead, the 34-year-old operated the company as a Ponzi scheme, using money from new investors to pay older ones, the US Attorney’s Office for the Central District of California said in a statement.

    The SEC said his scheme had raised more than $690 million. The Department of Justice said it began in 2015 and that $227 million put in by victims was yet to be repaid.

    Horwitz, described by the Los Angeles Times as “a small-time actor“, failed to find success as an actor. He starred in the critically panned 2020 film “Last Moment of Clarity”.

    He allegedly used money from the scheme to fund a lavish lifestyle, which authorities said included trips to Las Vegas, buying a house worth $6 million, and paying a celebrity interior designer.

    Authorities said the scheme had started in 2015, and that Horwitz and 1inMM promised victims returns of more than 35 per cent.

    To establish his legitimacy, “Horwitz provided investors with fake license agreements, as well as fake distribution agreements with Netflix and HBO, all of which contained forged or fictional signatures,” the US Attorney’s Office said.

    Horwitz has been charged with wire fraud and could face up to 20 years in prison if convicted.

     

  • Investors in Oko Oloyun’s Ponzi scheme storm office to demand money after death

    Investors in Oko Oloyun’s Ponzi scheme storm office to demand money after death

    Tens of Lagosians stormed the LASU Road office of late Alhaji Fatai Yusuf, popularly known as Oko Oloyun, to demand the money they invested in his Ponzi scheme.

    Oko Oloyun, a popular Lagos-based trado-medical expert, was murdered on Thursday around 4:30pm on the road while travelling to Iseyin, Oyo State. He was reportedly attacked by some hoodlums at Igboora.

    Following his demise, people who invested money in his Ponzi scheme, known as “Option C” stormed the Head office of his company to demand how to retrieve their money.

    The investors were the more confused as his two offices at Egba Idowu along Igando road in Lagos were shut with no one to provide information.

    The investors, however, vowed to take drastic measures if a statement was not issued by the organization as soon as possible.

    Just like the day MMM folded up, the investors in “Option C” programme narrated how much they had invested and insisted they could not afford to lose their hard-earned money.

    An investor, who identified himself as Tunde explained that Option C is a money-making programme that promised a 10% return in two months.

    Tunde, who was trembling while speaking, added that he invested in the scheme in July 2019 and had only received returns once, contrary to the agreement of two months which was stated.

    Another investor, a retired teacher, who was clearly in shock, stated that she had invested millions having joined the programme in December 2018. She said she had only received N500,000 from her investment and that she was not sure of her fate with the death of Oko Oloyun.

    Clutching her investment documents, she said that she filed to pull out after inconsistency in payment but rescinded her decision when she was told that she could not get her investment back in full.

    Mrs. Sulaimon, an investor, said she aborted her trip to travel down from Badagry to Igando when she heard about the assassination of Oko Oloyun.

    Another investor, who spoke with teary eyes said Oko Oloyun’s death was a big blow to the Ponzi scheme. He however advised his co-investors to allow the family some mourning space before demanding for their money.

    Meanwhile, some investors who had visited the house of the late Oko Oloyun in Lagos alleged that they were denied access by the security men, with the statement that “Alhaja said we should not allow anybody to come in, they are all in Ibadan.”

    After the outcry, the investors agreed among themselves to visit the house of the deceased in Lagos during the Fidau prayers on the eighth day to demand their returns.

    However, a security man at Oko Oloyun’s Egan Idowu office alleged that one of the rooms in the head office was intentionally burnt by unknown men prior to Oko Oloyun’s death.

    He said the workers who were on duty had been arrested.

  • MMM is gone, another Ponzi scheme’ll pick up soon in time

    The Ponzi scheme, MMM might be dead and buried, but market watchers have predicted another might spring up soon in time, and warned Nigerians must beware not to fall victim.

    Mrs. Nimi Akinkugbe, 23-years experienced banker, speaking on “Personal Wealth Management” at The Platform on May Day urged Nigerians need to make good decisions on financial management.

    Where you have investments that return 18% per annum and you get an offer that returns 30% per month, what you do is, run, Akinkugbe said.

    She further stated that investing is a conscious decision for the future and stressed individual investors must diversify investments across sectors and across currencies to curtail uncertainties.

    In her final analysis, she said planning, saving, investing and giving are the core factors to consider in developing a best personal financial profile; and emphasized life is not measured in naira and dollars.

    “After you have built wealth, protect your properties with insurance,” Akinkugbe said conclusively.

  • Comedians made people laugh during MMM saga- Helen Paul

    Comedians made people laugh during MMM saga- Helen Paul

    Nigerian comedienne, Helen Paul has stated that Comedy is not just a business , It’s a ministry. She says it’s a ministry that brings people joy and happiness. Paul alluded to the fact that comedians made people laugh when Nigerians lost money to MMM Ponzi scheme.

    The versatile comedian made this known in an interview with Punch.

    According to her:”Comedy is a ministry and not just a business; it is a ministry that brings joy and happiness. Not only pastors have ministries. A comedian sees things from other perspectives. When Nigerians go through hard times, comedians still upload materials on social media to make people laugh. For instance when many Nigerians lost money to the MMM Ponzi scheme, we still found a way to make people laugh. Comedy is not for unserious people. It is not something you get into just because of the money”.

  • UNIOSUN to expel over 4,000 students for ‘investing’ school fees in Ponzi scheme

    Indications emerge that the management of the University of Osun, UNIOSUN, may be making moves to expel over 4,000 students of the university for allegedly using their school fees to “invest” in popular Ponzi scheme, Mavrodi Mondial Moneybox, MMM.

    This was revealed in a statement issued by the acting registrar of the institution, Gafar Shitu.

    The statement disclosed that the affected students are owing the institution to the tune of 2 billion naira.

    The statement reads in full: “Over 4,000 students of University of Osun may lose their studentship for failing to pay their school fees before the expiration of February 28, 2017, deadline set by the university management.

    “No fewer than 400 parents/guardians of the defaulting students have called the University help lines to report that they had long given money to their children/wards.

    “The university Senate at its meeting of January 26, 2017, after observing that a large number of students had refused to turn up in spite of ceaseless appeals, decided that the students’ portal be reopened longer into the 12th week of resumption against the four weeks stipulated in the University regulations.

    “The decision of the University Senate, which was adequately communicated to all the students on February 2, 2017, was to afford more students the opportunity to pay their fees with effect from 17th to 24th February 2017, a date which was later extended until February 28, 2017.

    “On 16 February 2017, some students embarked on a protest against the enforcement of extant rules and regulations regarding fee payment and registration.

    “Investigations show that over 90 percent of the protesters had not registered for between two and 11 semesters, and were thus using the stipulated late registration penalty of N10, 000 as a smokescreen for their years of defaulting in fee payment and registration.”

  • FG shuts down Ponzi scheme in Abuja, arrests promoters

    In a swift reaction to stop the influx of Ponzi scheme promoters into the country, the Federal Government through the Securities and Exchange Commission (SEC), has sealed up the premises of Yuan Dong (YDEC) Ponzi scheme over illegal investment operations.

    This was revealed by the Head, Corporate Communications of the Commission, Mr Naif Abdussalam, in a statement on Sunday in Abuja.

    Addussalam noted that the closure was carried out to end unlawful activities of the company against unsuspecting investors.

    According to Addussalam: “Investments in the scheme range from a minimum deposit of N10,000 to a maximum deposit of N240,000.

    “The investment period of the scheme is pegged at a minimum of 30 working days to a maximum period of 10 months with offer of interest rates on short and medium term basis.

    “The company promises a daily profit of N80 and N2,400 depending on the category of investment,” he said.

    Abdussalam disclosed that the commission’s investigations showed that the company also enticed its customers with payment of bonuses should they convince more investors to invest in the scheme.

    He said that the commission had established that the company’s activities also constituted a breach of the Investment and Securities Act (ISA), 2007.

    “Furthermore it was discovered that contrary to their supposed existence in over 20 locations across the country, the company only has functional offices in Asaba, Kano and Abuja.

    “The promoters of these illegal operations have been arrested by the Nigeria Police Force and are undergoing interrogation.

    “The Commission wishes to notify the investing public that the company is not licensed to carry out investments business of any type and as such its operations are illegal,” he said.

    Abdussalam advised the public to exercise due diligence and caution in the course of making investment decisions.

    He said valid licence of lawful operators could be obtained on the commission’s website by members of the public to confirm the licences of firms they intend to carry investment activities with.

    TheNewsGuru.com reports that other top Ponzi schemes operating in the country include; MMM, Twinkas, AlwaysPays, DonationHub, GetHelpWorldwide, and a host of others.

    TheNewsGuru.com recalls that on 13 December, 2016 the Mavrodi Mundial Moneybox, popularly called MMM suspended all confirmed Mavros, otherwise known as money due for withdrawal for one month.

    However, regulation bodies such the Central Bank of Nigeria (CBN), The Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC), have continually cautioned Nigerians on the dangers of investing in Ponzi schemes saying it is illegal and lacks federal government’s approval.

  • I didn’t invest $5m in Ponzi Scheme, my church did – Ashimolowo

    The Senior Pastor of Kingsway International Christian Centre (KICC), has said former trustees of his church and not him invested $5m in a ponzi scheme

    Ashimolowo made this known in a statement signed on his behalf by his Chief Executive Officer, Dipo Oluyomi and Chief Operating Officer, James McGlashan.

    The statement also confirmed that the investment was made seven and a half years ago.

    KICC said the trustees of the church made the decision to invest in the scheme, but denied Ashimolowo had anything to do with it.

    “The attention of Pastor Matthew Ashimolowo and KICC has been drawn to publication in the media with the headline: ‘Pastor Matthew Ashimolowo loses $5million to Ponzi Scheme’,” the statement read.

    “We wish to state that the headline was unfortunate and misleading and has caused damage to the reputation of Pastor Ashimolowo.

    “The sensational headline suggests that Pastor Matthew Ashimolowo lost $5million when INFACT HE DID NOT and did not make the decision to invest.

    “Pastor Matthew Ashimolowo is the Senior Pastor of KICC and not her trustee and has never been a trustee of KICC.

    “As you are aware from the Charities Commission’s report, the decision to invest was solely that of the U.K trustees without any involvement of Pastor Matthew Ashimolowo.

    “Importantly as the report states, it is the trustees who have the responsibility for investing Charity Funds and NOT PASTOR MATTHEW ASHIMOLOWO.

    “The investment referred to were made by former trustees on behalf of the Charity over SEVEN AND HALF YEARS AGO. They believed they were acting in the best interest of the Charity and they did not and have not benefited personally.

    “Their actions were totally independent and were not influenced in any way by Pastor Matthew Ashimolowo.

    “KICC is a Charity whose main aim is to advance the Christian religion in the U.K. and around the world as well as provide local communities with a great deal of counseling and support, including educational, bereavement and prayer support”, it added.

     

  • Scam Alert: Pastor Ashimolowo’s KICC loses $5m to Ponzi scheme

    The Senior Pastor of Kingsway International Christian Centre, KICC, London, Pastor Matthew Ashimolowo has reportedly lost about $5m to a Ponzi scheme in the United Kingdom.

    According to a report by the News Agency of Nigeria (NAN) Ashimolowo’s 12,000-member mega church in Britain lost the huge amount of money after the worship house’s trustees carelessly invested money in a Ponzi scheme.

    The scamming of Pastor Ashimolowo’s church was reportedly perfected by former Premier League soccer player Richard Rufus, an ex-defender for Charlton Athletic.

    Rufus had promised investors along with KICC a return as high as 55 per cent.

    NAN quotes the Christian Post as reporting that the findings of an inquiry published on December 14, 2016 by the Charity Commission for England and Wales revealed that KICC, which is based in Kent. suffered a net loss of about $4.8 million (£3.9 million) after its trustees invested over $6.1 million (£5 million) in four instalments between June 2009 and June 2010.

    The church worked with Rufus because he was a member and former trustee of the church and had guaranteed that the investments would earn as high as 55 per cent in a year.

    Rufus was however found guilty of defrauding about 100 investors out of a total of $10,731,159 (£8,682,343) in the £16-million investing scheme in 2015.

    According to findings, KICC was the single largest investor in the scheme.

    The Charity Commission said in the report that the church’s trustees who handed over the funds were guilty of “mismanagement.”

    NAN reports further that the commission, during its inquiry, appointed an interim manager to review the trustees’ decisions to invest the £5 million.

    The interim manager found that the trustees did not investigate enough nor consider that the rate of return they were promised was realistic and put too much trust in the trustee’s good standing with the church and community.

    “The interim manager found that conflicts of interest were not managed properly by the decision-making trustees when making the decision to invest.

    There was too much reliance on the expertise of the ex‑trustee when he was personally interested and conflicted,” the report states.

    “The interim manager found that insufficient consideration was given by the decision-making trustees as to whether the guaranteed rate of return was unrealistically high, or to the potential for fraud.”

    Attempt by the church to get back its money failed when Rufus filed for bankruptcy and was declared bankrupt in 2013.

    The church is however yet to respond officially to its lost in the scheme.