SEC Cautions Public against Unlicensed Investment Scheme
The Securities and Exchange Commission (SEC) has issued a strong warning to the investing public over an unlicensed investment scheme being promoted by Mekanism Marketing Ltd, also known as “Mekanism.”
In a public notice, the Commission clarified that Mekanism Marketing Ltd is neither licensed, authorised nor approved to operate within Ghana’s capital market. It stressed that any investment activity undertaken by the entity constitutes an illegal and unauthorised capital market operation.
According to the SEC, the scheme is being advertised aggressively online through social media platforms and other digital channels to attract funds from unsuspecting members of the public. The company reportedly invites individuals to deposit money for investment purposes, promising fixed daily returns based on the amount invested.
The regulator further disclosed that participants are required to perform vague and unspecified tasks labelled “Job 1” to “Job 10” as a condition for earning daily, monthly or annual income. The SEC described these activities as unclear and lacking transparency.
The Commission considers the returns being promised as unrealistic and unsustainable, noting that the structure of the scheme bears the hallmarks of a fraudulent operation designed to deceive investors.
Citing Section 109 of the Securities Industry Act, 2016 (Act 929), the SEC emphasised that no individual or entity may operate as a market operator, broker, dealer, investment adviser or fund manager without obtaining a valid licence from the Commission. It warned that any breach of the Act could attract both administrative and criminal sanctions.
The notice also referenced the Companies Act, 2019 (Act 992), which prohibits companies from inviting the public to invest in securities without complying with laid-down legal requirements.
The SEC indicated that it is collaborating with relevant law enforcement agencies to identify those behind the suspected scheme and ensure appropriate action is taken.
Investors have been advised to verify the licensing status of any person or company offering investment products or services before committing funds, as part of efforts to protect their interests and maintain the integrity of Ghana’s capital market.
