Crowdyvest, Farmforte among 58 companies blacklisted by EFCC as Ponzi schemes

The Economic and Financial Crimes Commission (EFCC) has issued a general notice to Nigerians about 58 companies operating illegal Ponzi schemes. Among them are the digital investment platform, Crowdyvest, and the agric investment platform, Farmforte. The agency noted that these entities pose as investment companies that orchestrate their fraudulent activities on Nigerians.

In its press statement, EFCC highlighted that the companies are not registered under the Central Bank of Nigeria (CBN), and the Security Exchange Commission (SEC) as both regulators denied their regulatory operation approval. 

“In line with its commitment to sanitizing the financial space of the nation and offer the investing public adequate and reliable information on the activities of illegal ponzi scheme operators across the country, the Economic and Financial Crimes Commission, EFCC, hereby alerts Nigerians on the operations of 58 companies posturing as investing entities and defrauding innocent Nigerians of their hard-earned money,” part of the statement reads. 

A long list of the companies blacklisted by EFCC with familiar entities such as Crowdyvest and Farmforte Limited & Agro Partnership Tech are: 

Wales Kingdom Capital, Bethseida Group of Companies, AQM Capital Limited, Titan Multibusiness Investment Limited,  Brickwall Global Investment Limited, Green Eagles Agricbusiness Solution Limited, Richfield Multiconcepts Limited, Forte Asset Management Limited, (Biss Networks Nigeria Limited, S Mobile Netzone Limited, Pristine Mobile Network), Letsfarm Integrated Services, Bara Finance & Investment Limited, Vicampro Farms Limited, Brooks Network Limited, Gas Station Supply Services Limited, Brass & Books Limited, and Annexation Biz Concept & Maitanbuwal Global Venturescrowdyvest Limited. 

See also: SEC orders Crowdyvest to quit its Halal fund, other investment offerings pending registration

It also includes: Jadek Agro Connect Limited, Adeeva Capital Limited, Oxford International Group and Oxford Gold Integrated,  Skapomah Global Limited, MBA Trading & Capital Investment Limited, TRJ Company Limited, Farm4Me Agriculture Limited, Quintessential Investment Company, Adeprinz Global Enterprises, Rockstar Establishment Limited, SU. Global Investment, Citi Trust Funding PLC, Farm Buddy, Eatrich 369 Farms & Food, Globertrot Farmsponsors Nigeria Limited, Farm Sponsors Limited, Cititrust Credit Limited, Farmfunded Agroservices Limited, Adamakin Investment & Works Limited.

Others are:  Cititrust Holding PLC, Green Eagles Agribusiness Solutions Limited,  Chinmark Homes & Shelters Limited, Emerald Farms & Consultant Limited, Ovaioza Farm Produce Storage Limited, Farm 360 & Agriculture Company, Requid Technologies Limited, West Agro Agriculture & Food Processing Limited, NISL Ventures Limited & Estate of Laolu Martins, XY Connect Investment Limited, River Branch Unique Investment Limited, Hallmark Capital Limited, CJC Markets Limited, Crowd One Investment, Farmkart Foods Limited, KD Likemind Stakeholders Limited, Holibiz Finance Limited, Ifeanyi Okpe Oil & Gas Services, Servapps Nigeria Limited, Barrick Gold Mining Company and 360 Agric Partners Limited.

EFCC emphasised that legal actions have been taken against many of the companies with 5 of them already convicted. It added that another 5 pleaded guilty but awaiting a review of facts while the rest are pending arraignment.

See also: Default in payouts, shutdown office, ruined lives; the story of Farmforte’s Agropartnerships’ crooked ‘exit’ from the Nigerian market

The agency reinstates its commitment to promoting anti-corruption by safeguarding “the public from opportunistic and predatory operators” and monitors every entity in the country towards the growth and development of Nigeria. 

What you should know about Ponzi schemes

Ponzi schemes are forms of fraud that lure investors and pay profits to earlier investors with funds from more recent investors. They mislead investors by either falsely suggesting that profits are derived from legitimate business activities (whereas the business activities are non-existent), or by exaggerating the extent and profitability of the legitimate business activities, leveraging new investments to fabricate or supplement these profits. 

A Ponzi scheme can maintain the illusion of a sustainable business as long as investors continue to contribute new funds, and as long as most of the investors do not demand full repayment or lose faith in the non-existent assets they are purported to own.

Prior to EFCC’s public pronouncement, the SEC in its new year agenda had vowed to eradicate Ponzi and Pyramid schemes in 2025 by protecting investors and enhancing legitimate investment opportunities. 

“The Securities and Exchange Commission has emphasized that protecting investors remains a cornerstone of its mission assuring that the commission will intensify efforts to stamp out Ponzi and pyramid schemes while paving the way for legitimate investment opportunities to thrive in 2025,” SEC noted. 

While expressing its confidence about reaping the opportunities ahead, the commission said that the commission is committed to regulating and developing the capital market as it looks to integrate it into an extensive economy. 

Aside from hunting down Ponzi schemes and improving investor’s security, SEC noted that it will strengthen the legal and regulatory framework to create a vibrant commodities ecosystem which includes leveraging on the country’s agrarian economy to unlock the market’s full potential.

Read More: Nigeria’s SEC set to stamp out Ponzi and pyramid schemes in 2025.