The Securities and Exchange Commission (SEC) has extended the verification of claims by unpaid investors who were involved in the illegal investment (Ponzi scheme) organized by Dantata Success and Profitable Company (DSPC).

SEC made the disclosure in a notice released on its website on Monday titled: “SEC continues verification of Dantata investors.”

According to Commission,  the verification exercise, which began on July 15 will now continue till July 30 and not July 19 as earlier reported.

Earlier development: Few months after it sealed the Kano premises of DSPC following its involvement in illicit capital market activities, SEC had said in a public notice that it would  begin a verification exercise of investors in the scheme.

Subsequently, the Commission obtained a court order to freeze the bank accounts of the company to preserve investors’ funds in line with the stipulations of section 13 and 173 of the Investment and Securities Act 2007.

According to SEC, the said investment company:

  • had disguised under an investment scheme, a strategy to solicit funds from naive members of the public.
  • gave attractive monthly returns on investment of between 25%-50%.
  • sold forms to investors between N1,000 and N3,000.
  • took the sum of N50,000 as minimum investment and a maximum investment of N5 million.

Extension of verification: Specifically, the verification exercise is extended due to the appointment of joint administrators/trustees for the company.

“The commencement of the verification exercise is sequel to the appointment of joint administrators/trustees for Dantata Success and Profitable Company and in pursuant to section 13 and 173 of the Investment and Securities Act, and consequent to an Ex parte Order granted by the Federal High Court, Kano,” SEC said in the notice.

  • According to the latest statement from the Commission, the verification will continue to hold in Kano from 9:00 a.m. to 4:00 p.m. daily.
  • All unpaid investors are advised to attend in person as attendance by proxy is not acceptable.
  • Investors are required to go with the original receipts evidencing their payments or bank tellers for deposit into the company’s account, valid means of identification and bank account details.

The move by SEC could be viewed as a way to mop up any form of illicit investment activity in the Nigerian financial system as those activities are bound to swindle unsuspecting investors of their funds.

Meanwhile, SEC’s involvement in DSPC’s illegal investment is not a regular move by the Commission and maybe traceable to the fact that the company was earlier registered under the Commission to perform capital market operations.