FG WARNS NIGERIANS OVER NEW PONZI SCHEME

In News 2019-05-17 15:11:54
FG WARNS NIGERIANS OVER NEW PONZI SCHEME
FG WARNS NIGERIANS OVER NEW PONZI SCHEME

The Securities and Exchange Commission (SEC) has warned that investors, investing their money in Loom Money in Nigeria, a ponzi scheme are at risk.

 

Acting Director-General of the commission, Mary Uduk made this known in Abuja today, saying the venture is not a tangible business model.

 

Uduk, represented by the acting Executive Commissioner, Operations of SEC, Isyaku Tilde described the venture as a ponzi scheme where returns are paid from other people’s invested funds.  

 

Uduk said that unlike MMM - another ponzi scheme that penetrated the Nigerian market and crashed with billions of naira lost - which had a website and a known promoter, the promoters of Loom are not yet known and the pyramid scheme operates through closed groups mainly on WhatsApp and Facebook.