SEC Shuts Down Ponzi Scheme In Kano

The Securities and Exchange Commission (SEC) has sealed off the premises 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 falls within fund management without registration with the apex regulator.

According to SEC, “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.”

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.

They also indicated a registration period of February 5, to February 15, 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 investment period of the scheme is pegged at a minimum of 30 working days to a maximum period of 12 months with offer of interest rates on short and medium-term basis.

It claims to be involved in trading, general merchandise supply, oil and gas,transportation, import, export and general contract.

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