Ponzi scheme

By Uzair Adam

On Monday, October 14, 2024, a team of officers from the Enugu Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) visited Urban Radio 94.5FM, Enugu, to invite Favour Ekoh, the host of the station’s program Prime Time, for questioning.

Ekoh is under investigation for her alleged involvement in a N700 million Ponzi scheme that affected about 50 victims.

The victims claimed Ekoh enticed them to invest in “Life Trading,” a scheme run by Leverage Index Limited, where they were promised 10 percent returns on their capital after a set period.

However, after they invested, the company, located at No. 1 Colliery Street, Okpara Avenue, Enugu, shut down, leaving them without their capital or any promised returns.

The victims said Ekoh was their primary point of contact for the scheme.

Upon arriving at the radio station with an arrest warrant, EFCC officers identified themselves to the station’s Managing Director, Bamikole Owoyomi.

However, in an unexpected move, a staff member called the station’s Chairman, who ordered the gates to be locked, trapping the EFCC officers inside the building.

The officers then called for backup, which led to the arrest of Owoyomi, Ekoh, and two security guards for obstructing the EFCC’s duties.

Ekoh, who was trailed to the station as part of a sting operation to prevent her from evading arrest, was allowed to make a statement at the EFCC’s Enugu office and has since been released.

Owoyomi and the guards, who were initially detained for preventing the officers from carrying out their duties, also made statements and were later released.

In a statement, Dele Oyewale, Head of Media & Publicity for the EFCC, emphasized that the commission holds the media in high regard but criticized the actions of the station’s staff as unlawful and obstructive.

He called on the International Press Institute (IPI) and the Nigerian Union of Journalists (NUJ) to examine the station’s conduct and Ekoh’s professional ethics, given her involvement in the fraudulent scheme.

The EFCC clarified that no equipment at the station was damaged and that there was no disruption to the station’s lawful operations during the arrest.

By Ibrahim Suleiman Ibrahim

The 7th of July marked exactly one year since I completed my NYSC, and so far, it has been an educative and worthwhile experience – Alhamdulillaah!

Let me tell you a story about my first experience in the labour market. The story goes thus;

A few days after the formal completion of my NYSC, I thought I should start job-hunting immediately. I said to myself then, “It’s better to strike while the iron is still hot”, what the Hausa people call “Da zafi zafi ake dukan ƙarfe“. I thought it was a prompt decision I made, forgetting that some of my colleagues with whom I completed NYSC had already secured lucrative jobs long before we completed NYSC. 

I didn’t let that discourage me anyway. “They are children of the elites, after all”—I said to myself. 

Another thing that motivated me to an immediate and unrelenting job-hunting was the fact that the Certificate of National Service, which used to be a barrier to so many opportunities I missed during my service year, had become handy at that time, and would no longer affect subsequent opportunities that might come.

So, to commence the job-hunting. I started following popular job sites and physical employers for job opportunities and ensured I did not let any job advert or link pass me by without applying. All these, I did with much confidence and hope to get a good job in no distant time.

One fateful evening, not up to a fortnight after the commencement of my job-hunting journey, while I was reclining on the sofa, I got a text message that reads thus;

“Congrats u have been shortlisted for our company Orientation on Monday 18/07/22 at 2nd floor, XX building Beside XXX Bank by XXXXX way Opposite XXXXX Road Kaduna, by 8:30 am.”(some information about the venue deserves confidentiality, hence the XXXX).

It was a text message from a random 11-digit phone number informing me that I had been shortlisted for a job and inviting me to an orientation exercise to mark the commencement of the job.

I was hellbent on getting a ‘better job’ that I didn’t even pay attention to the sheer informality and unprofessionalism in the text message I got. 

It is noteworthy that I already had a job I was managing then, but I was eager to get better opportunities since I was done with NYSC and expectations were very high.

So, I dressed my best on the scheduled morning for the orientation exercise and prepared for a possible interview that might come up during the orientation.

It will baffle you to know that I wasn’t even sure which of the jobs I got, but I was confident it would be better than the job I was managing then.

On reaching the venue, I saw a crowd of young people queuing in front of a desk officer for documentation and trooping into a large hall afterwards.

Long story short, I got into the hall after the tedious documentation process and later discovered that I was cheaply lured into attending a ‘Neolife’ lecture—Neolife is one of those tricky investment schemes claimed to be a foreign investment company, filled with a bunch of jobless people, where your income solely depends on the number of people you successfully convince into investing in the scheme. 

They indoctrinate the belief that you could become a multi-millionaire in a few months of investment if you successfully convince people to join the scheme. They tell you about how useless it is to seek salary jobs and how important it is to invest your whole savings into Neolife. They’ll tell you stories of one of their colleagues living in Europe, making millions of dollars due to investing in Neolife.

I felt disappointed and heartbroken to discover that I finally got lured into attending their lecture because of my naivety as a fresh graduate. I have spent my whole life avoiding the agents and promoters of such schemes.

That day I bade an official “Welcome” to the labour Market.

I have more stories about my labour market experience, but I’m indisposed to write about them now; perhaps, I’ll do that leisurely as time passes.

Ibrahim Suleiman Ibrahim wrote via suleimibrahim00@gmail.com.

By Bilyamin Abdulmumin

In the first part of this article, Ponzi alias pyramid schemes were discussed in detail, including their cunning modus operandi. If you come to these schemes with suspicion and scepticism, the chance is that you would notice some funny or dubious traits associated with them. The second part wishes to discuss these traits.

An obsession to prove originality

When someone is not truthful, he knows. So, he will assume the suspect mode consciously or unconsciously. He will always show the urge to convince others that he is a saint. This phenomenon is a funny trademark of Ponzi schemes.

These vague platforms float all kinds of certificates at any given opportunity to prove they are real. The more one becomes obsessed, the easier it becomes to detect his flaws. For instance, how could a firm claiming to be a global investment but floating a CAC with business name registration (which even a market woman can get) as evidence of originality? Many Ponzi agents woo potential subscribers with certificates as evidence of legitimacy, “mai kaza a aljihu ba ya jimirin” as” loosely means “he who has a skeleton in the cupboard live in fear.”

Unprofessional communication

 In this 21st century, communication has become a fundamental part and parcel of any firm, especially the one claiming to be a global player. Any renowned firms there will seek to prove to be professionals in their platforms and customer service delivery. For instance, if you visit any Nigerian telecommunications or bank platforms or engage their customer service agency, you will find them very professional. Likewise, their command of the English language is standard. But that is not the case with many Ponzi schemes. One will find their platform full of average written English, their responses sometimes as good as any street English user.  I have observed one costly mistake from these platforms; they kept replying “transaction successced (sic)” instead of “transaction succeeded” This is an embarrassing mistake no firm would afford. 

Definite and stable gains

Market forces dictate that there is always a level of uncertainty for the return of any investment, but not in the world of seemingly Ponzi schemes. Most legitimate investments are based on “gain and loss”. Sometimes the investment return will be much, small, or even deficit depending on the market forces. Still, as mysterious as it is, this basis of ‘gain and loss’ does not exist in the realm of Ponzi schemes. The song is always the same in these fraudulent platforms: gain and gain, invest x naira and recoup 2x naira.

 Some market forces not long ago that caught the global economy unaware were Covid-19 and Ukraine inversion by Russia. The only market immune from the shocks was the Ponzi scheme. So, dear investors looking for easy money, wake up and smell the coffee.

Camouflage 

Of course, anyone who wants to play a shady game will woo others into believing him by camouflaging a well-known establishment. The Ponzi schemers are masters of camouflage. They float a famous brand as their own. But a simple way to discern this trait is by noting the difference in name between the platform and its website address; let me emphasize this point by riding on the back of the white paper issued on Sunpower.

Sunpower is an acclaimed online investment but was found untrustworthy by “nogofallmaga”, an NGO dealing with scam practices.  The pseudo-Ponzi scheme is known everywhere as Sunpower, but their website name is www.sunsolar.one. This appears to be camouflage because there is a genuine global brand with the name Sunpower and has www.sunpower.com as its website address. So, dear Sunpower, why is the vagueness (brand name different from the website address)?

The dubious and funny traits of fraudulent platforms are many. Control your desire for windfalls, and it becomes difficult to sell you a dummy.

Bilyamin Abdulmumin wrote via bilal4riid13@gmail.com.

By Bilyamin Abdulmumin

Needless to say, everyone wants money. Most of us have an insatiable love for them. There is this Hausa rhetoric:  if anyone says, “you have too much love for money, then the person saying that is playing with your intelligence”. In other words, the accuser is being unserious because what he said is a fact not only about you alone but everyone.

However, that is not the nitty-gritty of the matter because the like for money is one thing, and getting them is another. Getting the money is not as easy as pushing a standing pestle. Neither is it as easy as slapping a chick (in Dan Anace’s words)

To get the Phoenician’s invention, one has to invest a lot. It is a struggle for “survival of the fittest”. Those who bring or have the best ideas or strategy get them, thus putting us in constant skirmish and outweighing one another (capitalism in short).

Through their programs, some people have allegedly found a platform that can bring us this money almost effortlessly. In other words, the Ponzi scheme, alias pyramid, promises to free us from the bandage of suffering before getting the money.

To get to the utopia, according to these organizations, one will only invest a certain amount of money, and instantly a fixed profit is ensured (which one can claim after some time). The return of these investments is usually from 10 to 1000 per cent.

Initially, these Ponzi organizations’ operations were physical, with their offices and agents well known. One of such schemes that once cut across nook and cranny in Zamfara State was “oil and gas investment.”

The gale of the scheme in the state swept aside everyone on its path. It left neither business people, politicians, government workers, or even town heads. The “oil and gas” claimed an investment with a 100 per cent return in two weeks. For instance, an investment of 10,000 would qualify one to cash out 20,000 in two weeks. This is the type of eldorado business everyone can envisage, making it difficult to resist.

With the global transition from a physical to an online platform, the Ponzi schemes have followed suit. They would unleash their various applications where subscribers follow laid-down rules. Although different from the physical schemes, the concept remains the same: invest a certain amount of money and recoup mouth-watering profit (at 100 % assurance).

MMM was one online Ponzi that traversed the length and breadth of Nigeria, thanks to the subscribers’ testimonies like that of the oil and gas scheme. MMM promised and initially delivered 30 per cent profit to subscribers at every kobo invested within two weeks. This online investment was even riskier because the subscribers were dealing with faceless agents. When the MMM finally crashed, the bang of the burst was heard everywhere across the globe.

How the MMM founder from the far East of the globe, Russia, was able to convince Nigerians (some of whom are learned) to use not only their savings but other people’s money (staff salary, school registration fees, or money entrusted to them) was a mystery

The basic modus operandi of any pyramid scheme is the same: one particular schemer (the Ponzi initiator) would convince one to two people. Next, these two people convince four, four convince eight, and it keeps cascading like a symbolic pyramid hence the name pyramid scheme. Note the new subscribers in the pyramid pay the older ones; those at the top, especially the schemer who is at the top, bag the most money out of the scheme to the detriment of those at the bottom. For the scheme to remain healthy in operation, the new subscribers must always be able to pay the older ones; otherwise, the scheme becomes stuck in the mud.

Some of the Ponzi schemes recently to have met the waterloo are ISME and OSTIME. And according to “nogofalmaga”, an NGO specialist in dealing with Ponzi schemes, some other currently active schemes are only a matter of when not if they flow suit. These are SunPower, Tesla-recharger, Bitmaincenter sabrinascala, stormgain, among others.

In order not to take too much space, I reserved for the next article the discussion of some funny traits of Ponzi schemes

The elixir for easy money doesn’t exist. The Ponzi scheme can only provide for a few while robbing many others. If it is too good to be true, don’t trust it.

Bilyamin Abdulmumin wrote via bilal4riid13@gmail.com.