The Securities and Exchange Commission (SEC), just as it did during the inglorious MMM era, had warned Nigerians against Loom Ponzi scheme saying, it is ‘a looming danger’.
According to the Acting Director-General of the SEC, Mary Uduk, an inter-agency committee, Financial Services Regulation Coordinating Committee (FSRCC) is collaborating with security agencies to track the group and shut it down. “We, therefore, wish to notify the investing public that the operation of this investment scheme has no tangible business model, hence it’s a Ponzi scheme, where returns are paid from other peoples’ invested sums. Also, its operation is not registered by the Commission,” she said. It is not clear what progress the commission has made ‘in tracking the masterminds of the scheme.’
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