SEC closes Dantata Success and Profitable Company Ponzi scheme

SEC

Nigeria’s Securities and Exchange Commission, SEC, said it has closed down a Ponzi scheme operation called Dantata Success and Profitable Company (DSPC).

The SEC said The company has been involved in unlawful solicitation of funds from the public with a promise of inexplicable high returns to investors. The action taken by the Commission was with a view to protecting investors.

The commission said its action is pursuant to its powers under section 13(w) of the Investments and Securities Act 2007, on 6th February 2019 sealed up the business premises of Dantata Success and Profitable Company (DSPC).

“The Commission has granted approval for the commencement of payment to the investors of Dantata Success, which will be supervised by an Administrator approved by the Commission effective 31st May, 2019 or earlier

The Commission further warns the public to exercise utmost caution before subscribing to investment schemes by confirming the registration status of any company or individual and the investment products they are offering before entering into any transaction with them.

Information about entities registered by the Commission to provide investment services can be found on the website of the SEC or at any of the Commission’s offices.” the statement said.

Nigeria has in recent Nigeria has become the hotbed of Ponzi schemes. In 2017, millions of Nigerians lost over N25 billion to MMM Nigeria and other Ponzi schemes.

Recently, millions of young people have also invested in Loom, a social media-driven Ponzi scheme.