How Ponzi scheme operators fleeced Nigerians of over N12bn

Between October 2020 and August 2021, unsuspecting Nigerians have been duped of over N12bn by Ponzi scheme operators, according to data sourced from the Economic and Financial Crimes Commission website.

It was gathered that most of the operators of the schemes promised their victims attractive returns on investment (ROI) as high as 55% after their first month of investment, bait swallowed by thousand Nigerians who have since got their fingers burnt.

WKC is allegedly owned by Adewale Daniel, who is currently on the run. He allegedly collected about N1 billion from several unsuspecting investors after promising to invest their funds in forex, real estate, and automobiles among others.

Soon enough, Daniel and his team started to put up motivational posts on Instagram with statements like, “We might make detours but the goal remains the same.” While some investors remained gullible, a few discerning ones, suspecting that the bubble was about to burst, pulled out their cash.

READ ALSO: SEC warns Nigerians against Ponzi schemes

While Daniel remains on the run, his parents, Mr and Mrs Emmanuel and Victoria Jayeoba, are cooling their heels in EFCC’s net. Contrary to the arguments of some critics on the arrest of the parents, findings from EFCC revealed that while Emmanuel, who is a Director in Wales Kingdom Capital, operates five bank accounts and had received a sum of N18, 397, 913. 67 before his arrest, the second suspect, Victoria, operates six bank accounts through which she received fraudulent transactions to the tune of N916, 607, 715. 48.

Quintessential Investment Company limited was run by 22 years old Joshua Adeyinka Kayode, who allegedly defrauded 170 people of the tune of N10.8 billion. While some of his victims are relieved that the long arm of the law has finally caught up with the youngster, others wonder if they will recover their funds.

Kayode was granted bail by Justice Nicholas Oweibo of the Federal High Court, Lagos, for the sum of N2 billion with two sureties. Justice Oweibo also ordered that each of the sureties must own a landed property within the court’s jurisdiction and must depose to an affidavit of means.

The judge also ordered that the two sureties and the defendant must deposit two passport photographs with the Court’s Registrar and that the defendant must also deposit his international passport with the Court’s Registrar.

READ ALSO: Investor protection: SEC shuts down Dantata Success and Profitable Company Ponzi Scheme 

Kayode and others, who are now at large, allegedly committed the offences between July 2020 and March 2021, as they allegedly defrauded the victims under the pretence of false multiple returns on investment.

The CEO of Themap.ng, an investment platform that specializes in logistics, virtual reality and real estate, Mr. Ayanso Mma, has also been detained by the EFCC in Lagos.

Before he was arrested, Themap.ng has been experiencing difficulties in paying investors their return on investment as promised. As expected, anger and impatience grew amongst investors who could neither receive their ROI nor their initial capital.

Meanwhile, the Security and Exchange Commission has bemoaned the proliferation of fraudulent investment outfits in the capital market, urging investors to desist from patronizing such illegal operators.

The Director-General, SEC, Lamido Yuguda, while speaking at the second post-Capital Market Committee (CMC) virtual media briefing, tasked Nigerians to stay away from fake financial experts who promise to double their money within a short time.

Yuguda described Ponzi schemes as a threat to market development, stating that the pervasiveness of Ponzi schemes impacts negatively on investors’ confidence.