SEC shuts down illegal ponzi scheme operator in Kano

SECURITIES and Exchange Commission (SEC) on Wednesday announced the shutting down of Dantata Success and  Profitable Company, Kano for engaging in illegal capital market activities.

According to a statement from the Commission, the company was shut down for carrying out investment operations that fall within fund management without registration with the apex regulator.

“They do not have registration with the SEC and the Commission has powers according to Section 13 of ISA 2007, to shut down any company carrying out capital market activities without due registration.

“Nigerian laws provides that business activities in the country has to be regulated, in this case, SEC is supposed to regulate them,” SEC said in an emailed statement.

“The strategy of the company is to solicit for funds from unsuspecting members of the public by enticing them with returns of monthly interest on investment of between 25 per cent to 50 per cent, depending on the nature and investment type.

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“They also indicated a registration period of 5th February to 15th February in one of their numerous notices directing all prospective customers to make deposits into their bank accounts.

“The company sells its forms to prospective investors according to their investment plans ranging from N1,000 to N3,000.

“The minimum amount investable is N50,000 while the maximum is N5,000,000.

“The commission had established that the company’s activities also constituted an infraction of the Investments and Securities Act (ISA), 2007.”

“The account of the company have been frozen, the promoters have been arrested by the Nigeria Police Force and are undergoing interrogation.

SEC then advised the public to be cautious while making investment decisions.

It added that valid licence of lawful operators could be obtained on the commission’s website to confirm the licences of firms with which they intend to carry out investment activities.

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