Takeaways from popular Ponzi Schemes like Ovaioza, Chinmark Group
- Many Ponzi schemes have appeared and disappeared in 2022 after cashing out on investors
- Prominent ones like Ovaioza Farm Storage Produce and Chinmark Group duped their victims of billions
- They had one thing in common, they laboured to gain trust and present an attractive front
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2022 was the year of the rise and fall of investment platforms that defrauded Nigerians. From Ovaioza Farm Storage Produce Business (OFPB) to Chinmark Group, unwary investors were fleeced of billions of naira in the past year.
Source: UGC
Modus operandi of the Ponzi schemes
With the sophistry of their operations and sparkling corporate image, the operators of these fraudulent schemes weaved a web of investment platforms that trapped many Nigerians.
Some investors who lost life savings to the Ponzi schemes became suicidal or went into depression, while others died of heart attack and some are yet to pick up the pieces of their lives.
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Below are some investment schemes that turned out to be a farce.
Ovaioza Farm Produce Storage Business (OFPB)
Founded in 2020 and collapsed one year after, OFPB was operated by 29-year-old Ovaioza Yunusa, a graduate of Nursing and Midwifery.
She lured investors to her fake platform by telling them to invest in farm produce.
Nigerians responded by investing money into the scheme run by Ovaioza who had no experience in successfully running a business.
She presented a clean front and did numerous giveaways on social media, where she lured and eventually duped her victims.
In one of her Facebook posts, she narrated how she was able to amass a huge following by presenting herself sensually and attracting admirers who later invested in her scheme.
In the end, it was discovered she had frittered away over N12 billion belonging to unfortunate investors.
One investor posted on Facebook that she almost took her own life after being defrauded by Ovaioza.
She said:
“When Ovaioza happened to me, I lost interest in everything in my life.
“If not for my staff who are in charge …by now the business could have folded up. I wish I can pay them more. They deserve everything good in life.
“I am always praying for them, those seeking admission, may God grant them. Life partners may they meet the best. Money, may God always provide for them.”
Chimark Group
Run by Marksman Chinedu Ijomah, the group owned a raft of businesses.
From Chinmark Homes Shelter, Chinmark Rides and Logistics, Chinmark Restaurants and Food Services, Chinmark Medicals to Chinmark Consultancy, Ijomah managed to present himself as an astute businessman.
In December 2021, the Nigerian Securities and Exchange Commission (SEC) declared that the group is a farce alongside its associate, FINAFRICA Investment Limited.
SEC said that Chinmark Group and FINAFRICA are Ponzi platforms disguised as profitable businesses.
Chinmark collapsed in April 2021 when it could not meet up with its financial obligations.
Hachi Farms.
Owned by Jennifer Nyesome-Effiong, a graduate of Pan-Atlantic University in Lagos, Hachi Farms was founded in 2018 with a promise of mouth-watering return on investment.
Trouble began when investors of the ill-fated Hachi Farms could not get their profits.
She stopped paying in August 2021 after claiming she was a victim of fraud and someone ran away with N250 million belonging to the company.
She has since gone into hiding.
Eatrich Farms
Eatrich Farm blazed into the ‘market’ as a tech-driven agriculture firm, depending on investors’ funds to plant and produce food crops.
Eatrich was operated by Sam Afolabi and began operations in the last quarter of 2021.
Afolabi disappeared with billions belonging to investors while his brother and an employee are in prison for the crime.
Despite defrauding people, Afolabi also refused to pay staff salaries leading to a protest, according to reports.
The operators of the Ponzi schemes employed similar moves in fleecing their victims by baiting them with irresistible offers.
They woo their victims with initial payments to gain trust and repeat similar patterns with others until they snare a lot of people.
Top 7 critical signs to spot a Ponzi scheme before you are scammed
Legit.ng reported that earlier this year, the Economic and Financial Crimes Commission (EFCC) revealed that in the last three years, it receives no less than 1,000 letters filed against Ponzi scheme operators on a monthly basis.
Ponzi schemes are unverified investment platforms that promise investors high and mouth-watering interests on their investments.
The name comes from Charles Ponzi, a 1920s notorious fraudster who operated a scheme where he promised investors a 40% return on their investments in 90 days until the scheme crashed.
Source: Legit.ng
