Ponzi scheme: SEC shuts down Dantata Success and Profitable Company 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.

The commission in a statement by Mrs Efe Ebelo, its acting Head, Corporate Communications, said that the company was shut down for carrying out investment operations that falls within fund management without registration with the apex regulator.

“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”, Ebelo said.

She noted that the company was collecting funds from unsuspecting members of the public by enticing them with returns of monthly interest on investment of 25 per cent and 50 per cent respectively.

“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 Feb. 5 to Feb. 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,” she said.

According to Ebelo, SEC has established that the company’s activities also constituted an infraction of the Investments and Securities Act (ISA), 2007.

Ebelo said the SEC management noted that the closure was to end unlawful activities of the company against unsuspecting investors and therefore, urged investors to ensure they only deal with fund managers that were registered with the commission.

“The accounts of the company have been frozen, the promoters have been arrested by the Nigeria Police Force and are undergoing interrogation.

“The commission wishes to notify the investing public that the company is not licensed to carry out investments business of any type and as such its operations are illegal,” SEC said.

The commission therefore, advised the public to exercise due diligence and caution in the course of making investment decisions.

She said that valid licence of lawful operators could be obtained on the commission’s website by members of the public to confirm the licences of firms with which they intend to carry out investment activities.