The Securities and Exchange Commission (SEC) has warned the public against dealings with FinAfrica Investment Ltd and Poyoyo Investment.
The commission described the business of Poyoyo Investment (Pilvest) Nigeria Ltd., as a Ponzi scheme. They pay returns from other people’s invested money.
“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,” the circular said”.
Reacting to the circular, Dr Marksman Ijiomah, the Chairman, Chinmark Group, said FinAfrica Investment Limited was not engaged in capital market business.
He disclosed that the partnership had been on since six years. He said that SEC had never written the company to notify 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”.
“What we do is that we have partners who come together and give us funds to run business and at the end of the month, we give them profit from the business”.
He added that the company was not into a Ponzi business.
“Our rate is three per cent monthly, that is what we pay.