SEC Flags Mekanism Investment Scheme

The Securities and Exchange Commission (SEC) has flagged the Mekanism Investment Scheme promoted by Mekanism Marketing Ltd.

The said entity is observed to use social media advertisements and online platforms to solicit funds from members of the public by requesting deposits from participants for investment purposes while promising fixed daily returns, which vary depending on the amount invested.

It also requires participants to undertake vague and unspecified activities labelled “Job 1” to “Job 10” as a basis for earning daily, monthly, or annual income.

In a statement, the Commission said the company is unauthorised to operate in Ghana’s capital market.

Accordingly, it said any investment activity promoted by this entity constitutes an unauthorised and illegal capital market activity.

“The investing public is therefore strongly advised to exercise extreme caution and desist from investing in any product or scheme promoted by this entity,” it warned.

“The SEC considers these promised returns to be unrealistic, unsustainable, and bear features of a fraudulent scheme designed to lure unsuspecting members of the public.”

Citing Section 109 of Act 929, Section 206 of Act 929, and Section 294(1)(b) of the Companies Act, 2019 (Act 992), the SEC said any person who engages in such unauthorised capital market activities is liable to administrative and criminal sanctions under the laws of Ghana.

As such, it said it had collaborated with the relevant law enforcement agencies to identify and take appropriate action against the people behind the scheme.

The Commission further urged the General Public to verify the licensing status of any individual or entity offering investment products or services before committing funds.

Story by Hajara Fuseini

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