MBA Forex, a Nigerian forex trading company, has been in the news recently for all the wrong reasons. The company, which promised its customers high returns on their investments, suddenly closed its doors, leaving thousands of investors in the lurch.
MBA Forex started operations in 2018, advertising itself as a reliable forex trading company. The company’s business model was simple: investors would deposit their money, and MBA Forex would use it to trade in the forex market. Investors were promised returns ranging from 15% to 20% per month, with the option to withdraw their funds at any time.
Initially, the company seemed to be doing well. It attracted a large number of investors, and many people claimed to have made significant profits from their investments. MBA Forex also embarked on an aggressive marketing campaign, using social media and other platforms to promote its services.
However, things started to go wrong in early 2021. The company began experiencing delays in processing withdrawal requests, and investors started to complain about their inability to access their funds. Some investors also reported that the company had stopped responding to their emails and phone calls.
As the complaints piled up, MBA Forex issued a statement claiming that it was experiencing technical difficulties and that it was working to resolve the issues. The company also promised to resume operations as soon as possible.
However, as time passed, it became clear that the situation was much worse than initially thought. MBA Forex had stopped making payments to its investors, and many people had lost their life savings. The company’s website was taken down, and its social media accounts were deactivated.
The situation came to a head in July 2021 when the Securities and Exchange Commission (SEC) of Nigeria issued a statement warning the public against investing in MBA Forex. The SEC stated that the company was not registered to operate in Nigeria, and that it had been engaging in illegal activities.
The SEC also revealed that MBA Forex had been collecting funds from investors under false pretenses, and that it had been operating a Ponzi scheme. The commission warned the public to be wary of such schemes, and to only invest with registered and licensed entities.
Following the SEC’s statement, MBA Forex’s founder and CEO, Maxwell Weli Odum, was arrested by the Economic and Financial Crimes Commission (EFCC) of Nigeria. Odum was accused of operating a Ponzi scheme and defrauding investors of over ₦171 billion ($418 million).
In conclusion, the MBA Forex saga is a cautionary tale for investors in Nigeria and beyond. It highlights the need for investors to be vigilant and to do their due diligence before investing their money. It also underscores the importance of regulation and oversight in the financial industry, and the need for authorities to take swift action against fraudulent entities.