SEC Warns Nigerians About New Investment Scam, Calls it Ponzi Scheme
- The SEC has issued another warning to Nigerians about a fraudulent scheme operated by a company called Forsman & Bodenfors Ltd (F&B)
- The commission described Forsman & Bodenfors Ltd as an unregistered operator illegally posing as a Nigerian branch of a Swedish advertising company
- SEC advised Nigerians to verify the registration status of any company offering investment or job opportunities to avoid falling victim
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Securities and Exchange Commission (SEC) has alerted the public to the illegal activities of a company known as Forsman & Bodenfors Ltd (F&B), which is being paraded as the Nigerian branch of a Swedish advertising company.
Source: Getty Images
In a public notice, the SEC stated that the promoters of Forsman & Bodenfors Ltd are operating with clear criminal intent by falsely claiming affiliation with a reputable international brand.
According to the SEC, the company is allegedly luring Nigerians with promises of automatic employment in exchange for recruiting new members, who are then required to pay various sums of money for different positions within the company.
Preliminary investigations by the commission revealed that Forsman & Bodenfors Ltd has been actively promoted through social media platforms and online forums.
The SEC noted that the company’s operations display classic characteristics of a Ponzi scheme.
The commission stated that Forsman & Bodenfors Ltd is not registered by the SEC and is not authorised to solicit funds from the public or to operate in any capacity within the Nigerian capital market.
SEC issues strong advisory to the public
The SEC urged Nigerians to avoid any dealings with Forsman & Bodenfors Ltd or its representatives.
The commission warned that the risk of financial loss from engaging with the entity is extremely high.
The statement reads:
“The Commission wishes to inform the public that Forsman & Bodenfors Ltd is not registered by the Commission nor authorised to solicit funds from the public or operate in any capacity in the Nigerian capital market.
"Investigations indicate that the company is being fraudulently promoted online and is leveraging promises of employment to extract payments from unsuspecting Nigerians , a clear hallmark of a Ponzi scheme.”
Source: UGC
Verify before you invest
The commission also reminded the public to always verify the registration status of any company offering investment opportunities via its official portal, BusinessDay reports.
SEC added:
“The public is strongly advised to refrain from engaging with Forsman & Bodenfors Ltd or any of its representatives.
"To avoid falling victim to fraudulent schemes, Nigerians are encouraged to verify the legitimacy of any investment platform through the Commission’s dedicated portal: www.sec.gov.ng/cmos.”
Zugacoin, SamZuga not registered
In a related development, Legit.ng reported that the SEC flagged two cryptocurrencies operated by owned by Sam Zuga as illegal.
The commission disclosed in a new notice stating the promoters or issuers of ZUGACOIN and SAMZUGA GPT are not licensed to operate in any capacity in the Nigerian capital market, flagging the meme coins as illegal.
The SEC noted that both coins are meme coins and have no use case, intrinsic value or tangible projects backing them.
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Source: Legit.ng
