Despite repeated public warnings and previous enforcement actions, residents of Cross River State have continued to fall victim to a recurring wave of Ponzi scheme operators, the latest being TAG Investment Platform, which reportedly collapsed after operating for only three weeks in Calabar, the capital.

Angry clients stormed the company’s office on Friday to discover that operators had fled, prompting them to cart away available items left behind, including 10-kilogramme bags of rice, office furniture and bicycles.

Some were seen pulling down doors and windows in a desperate effort to recover something from their losses.

Ogwaje, a distraught trader at the nearby Watt Market, speaking amidst sobs said: “I invested N500,000 in the first week and got N1 million. Because of the high returns, I reinvested the money and was due to get it on Friday, only to learn that the people had run away.”

She said she had planned to use the money to restock her shop before the scheme crashed. “This is deliberate. They knew they would run away, that was why they gave most people Friday morning as the date to come for their funds.”

Another victim was seen screaming that in addition to the funds she lost, her phone was stolen while she struggled to take possession of a bicycle with another lady.

“Help me call my phone. I cannot find it. Somebody has taken my phone, please call it fast,” she appealed to another victim who stood watching as others struggled for the office items.

A history of deception

Cross River State has witnessed a troubling pattern of Ponzi schemes over the years.

During the military era, one Umannah Ummanah turned a two-bedroom apartment at Target by Goldie Street into a “Wonder bank,” collecting truckloads of cash from people before absconding, leaving many wailing.

In the MMM era some years back, some people reportedly committed suicide after their life savings and borrowed money disappeared. Yet many have still not learned their lessons.

Three years ago, a Ponzi scheme operator simply known as Michael floated a scheme called Micheno at Bakassi Local Government Area. People seeking “awuff money” left banks in Calabar to “deposit” their money with the hope of cashing big after their investment matured.

The scheme crashed, and over N1.5 billion of customers’ savings went down the drain. The operator was arrested, but nothing came of it, leaving hundreds to wallow in their tears.

After the Micheno saga came the NRC, which took up offices in several parts of the state. People queued up to deposit their money in the hope of making big profits. When the one-month maturity period approached, the NRC operators disappeared.

Last year, another Ponzi scheme took up office at Bassey Duke Street, the same street where the Vanguard office is located in Calabar. As early as 6.00 am, long queues of customers would occupy the ground floor to deposit money.

After paying a few people triple their deposits to attract more customers, the office was shut overnight and operators disappeared with hundreds of millions of naira.

Staff not privy to the development, who showed up for work the next morning, were beaten by crowds that gathered as usual for the day’s transaction.

Official Response

An official of the Ministry of Finance told NDV that scheme operators do not usually register or inform the ministry of their presence or activities.

“Neither do those who patronise them come here to seek information on the schemes before depositing their money. We are always left in the dark until people lose their money before they troop here to shout when it is too late,” the official said.

As victims continue to count their losses, the cycle appears set to continue unless residents learn to verify investment opportunities and resist the lure of impossibly high returns that characterise such schemes. (Vanguard)

Update news