The Securities and Exchange Commission (SEC) has advised members of the public to avoid dealing with FinAfrica Investment Limited and Poyoyo Investment (Pilvest) Nigeria Limited.
This was contained in separate circulars posted on the regulators website, the SEC stated that both firms are operating illegally without any form of registration by the commission.
The SEC labelled the business of Poyoyo Investment (Pilvest) Nigeria Limited as a “Ponzi scheme”, where returns are paid from other people’s invested sums.
The commission stated that its attention had been drawn to the electronic and WhatsApp messages being circulated to investors on behalf of Poyoyo Investment (Pilvest) Nigeria Limited.
According to one of the messages, Pilvest noted that it offers a 20 percent return on investment (ROI) on a minimum capital of N100,000 invested for a period of one month.
“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,” the circular reads.
On FinAfrica Investment Limited, SEC stated that the company prides itself to be an investment company that is involved in business development in commercial sectors of the economy and utilizes the funds in entities under Chinmark Group.
”The commission hereby notifies the investing public that neither FinAfrica investment Limited nor Chinmark Group is registered by SEC,” the second circular reads.
”The investment scheme promoted by these entities are also not authorised by SEC.
“In view of the above, the general public is hereby warned that any person dealing with the named companies in any capital market-related business is doing so at their own risk.”
In his reaction to the circular, the Chairman, Chinmark Group, Marksman Ijiomah, told NAN that FinAfrica Investment Limited was not involved in the capital market business.
Ijiomah, further stated that the partnership has been on for six years, noting that the SEC had never written the company to inform them that their dealings were not in line with their regulations.
“SEC did not term us a Ponzi scheme in the circular. We do not do capital market business, we do not sell stock or shares. We are not into equity funding,” he said.
“What we do is that we have partners who come together and give us funds to run the business and at the end of the month, we give them profit from the business.
“We do not call it interest, we call it profit. We have been doing it for over six years and from that partnership, we have been able to build a six-unit hotel in Enugu.
“We have also built a restaurant in Dubai and these things are visible for everyone to see.”
He also said that the company was not into Ponzi schemes.
“Our rate is three percent monthly, that is what we pay. SEC has neither invited us nor sent us a circular to say that what we are doing is not in line with their regulations before they made the publication,’’ he added.
