The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians about the activities of Forsman & Bodenfors Ltd, stating that the company is neither registered nor authorised to operate in the country’s capital market.
The SEC, in a statement posted on its official website on Monday, July 14, said the firm has been actively promoting its services across social media platforms while luring unsuspecting members of the public with fake promises of job offers and investment returns.
According to the Commission, “The attention of the Securities and Exchange Commission has been drawn to the activities of Forsman & Bodenfors Ltd also known as F&B, which is paraded by its promoters as the Nigerian Branch of a Swedish advertising company bearing that name with obvious criminal intent.
“The promoters of this fraudulent Nigerian entity go about promising Nigerians automatic employment in the company as compensation for recruiting more members who are lured to pay various sums of money for various positions in the company.”
The SEC said its preliminary investigations reveal that the firm’s operations carry the clear characteristics of a Ponzi scheme.
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It stressed: “The Commission hereby informs the public that Forsman & Bodenfors Ltd is not registered by the Commission nor authorized to solicit funds from the public or to operate in any capacity in the Nigerian capital market.”
The regulatory agency advised Nigerians to steer clear of any engagement with the firm or its agents, warning that the risk of financial loss is extremely high.
“Accordingly, the public is advised to refrain from engaging with Forsman & Bodenfors Ltd or its representatives in respect of any business in the Nigerian capital market, as the potential risk of losing funds to the fraudulent promoters of the entity is very high,” it added.
The SEC also urged the public to confirm the legitimacy of any investment-related company through its portal before transacting.
“The investing public is further advised to verify the status of companies and entities offering investment opportunities on the Commission’s dedicated portal – https://www.sec.gov.ng/cmos, before transacting with them,” the statement concluded.