Court Adjourns N2bn Suit Against Promoters of Ponzi Scheme Till Nov. 5

Justice Anwuri Chikere of Federal High Court, Abuja has adjourned the suit instituted by the Federal Government against promoters of Dantata Success and Profitable Company, a ponzi scheme for investment fraud in excess of N2bn to November 5, 2020 for plea and motion filed by the defendants.

The company and its promoters- Basira Ibrahim Dantata, Lawan Sanni and Gaji Ibrahim Dantata, allegedly defrauded about 7,250 unsuspecting investors who were lured to subscribe and invest in an unregistered investment scheme between 2018 and 2019, thereby committing an offence contrary to Section 54 of the Investments and Securities Act 2007 and punishable under same section.

When the matter came up in court, one of the defendants Gaji Ibrahim Dantata was not available due to health reasons.

The Securities and Exchange Commission (SEC) had pursuant to its powers under Section 13 (w) of the Investments and Securities Act (ISA), 2007, on 6 February 2019 sealed the business premises of Dantata Success & Profitable Company (DSPC), a company that had been engaging in illegal activities in the Nigerian capital market.

In addition, the Commission obtained court orders to freeze the bank accounts of the company to preserve the funds of investors in line with Section 13 (x) of the ISA 2007.

The company was not registered or authorized by the Commission to engage in any activity in the capital markets, however it targeted and reached Nigerian investors through radio programs in the Kano area of Nigeria and collected large sums of money from investors under the guise of a “structured investment”.

The activities of the company, the commission noted, contravene the provisions of Section 38(1) and 67(1) of the Investments and Securities Act which respectively, prohibit unregistered and unauthorized entities/persons from operating any investment business or making any invitation to the public to acquire or dispose of any securities of a body corporate or to deposit money with anybody corporate for a fixed period or payable at call.

The commission also issued a warning to the public that Dantata Success & Profitable Company and any individuals representing them are not registered and therefore not entitled to provide investment advisory or services in Nigeria.

The commission further warned the public to exercise utmost caution before deciding to subscribe to investment schemes and to always confirm the registration status of any company or individual and the products they are offering before entering into any transaction with them.