MMM: SEC WARNING STILL
UNHEEDED- SURVEY
Weeks after the Nigerian Security
and Exchange Commission (SEC) warned the general public against falling prey to
an online investment scheme tagged ‘MMM Federal Republic of Nigeria’, available
information show that many people still remain immovable in their quest for the
breadth-taking gains of the scheme.
In a recent survey by The Pointer, most of the respondents,
who were largely students of tertiary institutions, described the scheme as a less
risky venture which, if successful, leaves participants at a smiling end.
The MMM, according to information
on its website, is a trending financial scheme which promises to create a
community of people providing financial help to each other on the principle of
gratuitousness, reciprocity and benevolence. Registered members help each other
by providing certain amount of money (as ordered by the operators of the scheme)
and such paid amount is expected to yield a 30 percent increase at the end of
the month.
At any month end, members could
withdraw their invested amount as well as the added interest through a similar
means of being paid by another participant. By operation, the scheme, which
platform is nigeria.mmm.net, has no central system or account.
However, SEC, in a recent statement
on its website, disclosed that the system is a ponzi scheme, describing the
facilitators as online fraudsters who promise high rates of return with little
risk to investors. The Commission noted that “the platform has embarked on
aggressive online media campaign to lure the investing public to participate in
what it called ‘mutual aid and financial network’ with a monthly investment
return of 30 percent”.
“The operation of this investment
scheme has no tangible business model, hence it is a Ponzi Scheme, where
returns are paid from other people’s invested sum….its operation is not
registered by the Commission”, SEC added, advising the general public to
distance themselves from the online scheme and its illegal activities.
Nonetheless, Our survey revealed
that virtually all participants in the scheme have benefitted from it, thus
making it very difficult for them to quit despite the red alert of SEC. One of the participants, Ata Efe- who was
apparently marketing the scheme- told The
Pointer that she reaped a whooping sum of N73,000 (30 percent interest and
extra membership bonus), having invested N50,000 in her trial month. She
testified that many of her friends have been participating in the scheme,
adding that one of them recently acquired a N1.2 million worth plot of land
through the scheme.
Maryjane Okogie, another
testifier resident in Asaba, acknowledged the warning of the SEC, but dispelled
any possibility of quitting the scheme which has given her a cumulative gain of
N200,000. “I suspect that this may turn out to be a scam someday, but with the
current economic situation, I cannot stop investing until the system crashes”,
she insisted.
The gains of the scheme may not
be the only reason participants are not heeding the fraud alert of SEC, as some
religious leaders are allegedly canvassing support for it. One of the respondents in Our survey, a fresh
Mass Communication graduate of Delta State Polytechnic, Ogwashi-Uku, disclosed
that a clergyman in one of the Orthodox churches in Ogwashi-Uku, Aniocha South
Local Government Area of the state (names withheld) advised youths in the
church to make savings and invest them in the MMM scheme.
The respondent, Ofua (other names
withheld) quoted the clergyman, who had converged all youths in the church for
the purpose of advising them on the danger of being idle, as saying: “with our
current economy, even if you don’t have a job as a youth, you can make savings
and then invest it in the MMM that many people are now benefiting from. At
least, that will be more beneficial to you than being idle”.
SOURCE: JOSHUA ERUBAMI
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