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Investment scheme, SEC, Ponzi

Alpha Trust can’t operate as investment scheme ~ SEC

By on August 19, 2020 0 355 Views

The Securities and Exchange Commission (SEC) has declared the operations of Alpha Trust Investment Club (Atic Trust) illegal for its failure to comply with provisions of the Investment and Securities Act, 2007 (ISA).
The commission in an email response to the Global Financial Digest enquiries into the activities of Atic Trust, said the company is not registered with SEC as a capital market operator.
“Atic Trust Investment Club” is not registered with the Commission as a Capital Market Operator (CMO) nor as a registered investment scheme,” SEC said in an email signed by Emomotimi Agama, Head, Registration Exchanges Market Infrastructure and Innovations.
“Only CMOs registered with the Securities and Exchange Commission (SEC) are permitted to intermediate in the capital market.
“Furthermore, Section 160 of the Investment and Securities Act, 2007 (ISA) provides that “No person shall establish or operate a collective investment scheme or carry on or purport to carry on the business of a collective investment scheme unless such scheme is authorised by and registered with the Commission.
“Any entity that operates in the securities market in Nigeria, in whatever form, without complying with the provisions of the ISA, is operating illegally. Investors are therefore advised, to always confirm the registration status of any capital market operator prior to consummating a business relationship,” SEC said.
An investment club established by Aderemi Adeoye said Alpha Trust Investment Club (ATIC) has pulled together funds amounting to N56.6 million from friends on Facebook to take advantage of the capital market and other investment channels to create values for its members.
Adeoye, in a post on the group social media handle said; “I founded this Investment Club on June 6, 2018, when my friends on Facebook and I pooled the sum of N56.6 million in 6 weeks to invest in select stocks on the Nigerian Stock Exchange.
“A year later we diversified into property and our first investment was Manhattan Phase 2 Estate being developed by Adron Homes and Properties Ltd. The Club and individual members numbering 176 then jointly bought 200 Plots in the Estate,” he said in the post.
“The current worth of the Club is N635m while total contributions members have made up to date is N170m. Having built wealth that is more than three times our Contributions, we will be offering a unit of investment in the Club at N3 and minimum number of units a member can hold is 50,000 shares.
“That is why the minimum sum intending member can invest with us is N150,000. At present we have two members who invested N10m each and about 60 others who invested between N1m and N9.9m The remaining members invested from the minimum to N900,000 each.”
In a post soliciting membership of the club, it was claimed that the Club has a Board of Trustees made up of men and women of honour who are accomplished in their callings at home and abroad.
However, no member of the BoT are named or revealed, while it further claimed that it also has an Executive Management Team which runs the affairs of the Club on day to day basis.
“It is Registered with the CAC and has applied to Lagos State Government for Registration of a Multi-Purpose Cooperative Society,” Adeoye said in the post.
Attempt to get across to him for his side of the story was unsuccessful as he has yet to respond to the message sent to him through his social media platform.#GFD

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