‘LOOM MONEY NIGERIA’ IS A FRAUDULENT SCHEME, SEC WARNS

The Securities and Exchange Commission has warned Nigerians against fraudsters currently running an online investment scheme tagged “Loom Money Nigeria.’’

Acting Director-General of the commission, Ms Mary Uduk gave the warning at a news conference on Thursday in Abuja.

A statement by SEC’s Head of Media, Mrs Efe Ebelo, said that Uduk, who was represented by acting Executive Commissioner, Operations of SEC, Mr Isyaku Tilde, said Loom Money Nigeria had taken over the social media.

She said that the scheme targeted young people, luring them to participate in a pyramid model of the Ponzi.

The director-general disclosed that the fraudsters carried out their illegitimate activities via social media platforms like Facebook and WhatsApp.

She added that they lured young Nigerians to invest as low as N1,000 and N13,000 and to get as much as eight times the value of the investment in 48 hours.

Uduk said that the venture was a Ponzi scheme, where returns would be paid from other people invested funds, adding that it had no tangible business model.

“We are aware of the activities of an online investment scheme tagged ‘Loom Money Nigeria’.

“The platform has embarked on an aggressive online media campaign on Facebook and WhatsApp.

“They lure the investing public to participate by joining various Loom WhatsApp groups to invest as low as N1,000 and N13,000 and get as much as eight times the value of the investment in 48 hours.

“Unlike MMM that had a website and the promoter known, the people promoting Loom are not yet known and this pyramid scheme operates through closed groups mainly on Facebook and WhatsApp.

“If it were a local Ponzi scheme with known offices, it would be very easy for the Commission to seal their offices and freeze their accounts.

“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 people’s invested sum.

“Also, its operation is not registered by the Commission,” she said.

Uduk, therefore, advised the public to distance themselves from the scheme, adding that anyone that subscribed to the illegal activity did so at his own risk.

She assured that an inter-agency committee, Financial Services Regulation Coordinating Committee, was working on the issue, and that the commission was also collaborating with security agencies to track them down.

A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.

Loom Pyramid Scheme is not new to the world. Last month, Daily Mail UK reported that the scheme has resurfaced online all over the world, with different names such as ‘loom circle’, ‘fractal mandala’ and ‘blessing loom.’

In Nigeria, its central name is Loom Money Nigeria with individuals creating their own WhatsApp groups such as Jack Loom, Catherine Loom, among others.

FG INAUGURATES 30 THOUSAND NAIRA MINIMUM WAGE IMPLEMENTATION COMMITTEE

The Federal Government on Tuesday inaugurated the committee to negotiate the consequential adjustment in salaries arising from the new National Minimum Wage, with the Head of the Civil Service of the Federation, Winifred Oyo-Ita, as chairman.

While inaugurating the committee, Secretary to the Government of the Federation, Boss Mustapha, who is an alternate chairman of the committee, said the committee has four weeks to complete its assignment with the inaugural meeting scheduled to hold on May 20, 2019.

Among the members of the committee are the ministers of Labour and Employment, Finance, Health, Budget, and National Planning and Education.

Others are the Attorney General of the Federation and Minister of Justice, Director General, Budget Office, Secretary of the Federal Judicial Service Commission, Secretary, National Assembly Service Commission and Chairman, National Salaries, Income, and Wages Commission, who will serve as the committee Secretary.

GOV. WIKE SACKS COMMISSIONER DAYS TO DISSOLVING CABINET

Gov Wike

Rivers State Governor, Nyesom Wike has sacked the State Commissioner of Power, Hon Shedrach Chukwu days before dissolving his cabinet.

The reason for the sack of Chukwu is still sketchy but sources say it may not be unconnected to party matters.

The Governor in a statement by his Special Assistant on Electronic Media, Simeon Nwakaudu directed the sacked commissioner to submit all Government documents and property in his possession to the Permanent Secretary of the Ministry of Power.

Meanwhile, Governor Wike has stated that his administration will focus on security and agriculture during his second term.

Addressing newsmen after projects’ inspection on Monday, Governor Wike added that his administration will also continue to develop the education and health sectors.

Governor Wike said that his administration will be very decisive on stopping street trading in the state capital and its environs.

He said: “We believe that security is important and we believe that agriculture is key to making sure that we take our youths away from the streets.

“While we are continuing with education and health, security, agriculture and environmental sanitation will be given priority attention.

“Port Harcourt must not continue the way it is. People trading on the streets make Port Harcourt dirty. Cleaning up the city will be a special project. We will not allow Port Harcourt to continue to be dirty.”

Governor Wike inspected the Real Madrid Football Academy, Judges’ Quarters and the Fruit Garden Market.