SEC warns Nigerians against ‘fraudulent ponzi scheme’ F&B

The Securities and Exchange Commission (SEC) has issued a strong advisory cautioning Nigerians against engaging in any transactions with a company operating under the name Forsman & Bodenfors Ltd, commonly known as F&B, due to alleged fraudulent activities tied to employment and recruitment schemes.

In an official statement endorsed by the Commission, the SEC revealed that Forsman & Bodenfors Ltd is being deceptively portrayed by its promoters as the Nigerian subsidiary of a Swedish advertising agency with the same name—an action the Commission described as bearing “obvious criminal intent.”

“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 for a Swedish advertising company bearing that name with obvious criminal intent,” the statement read.

SEC Flags F&B as Unlicensed and Fraudulent
According to the SEC, the promoters of this fraudulent entity entice unsuspecting Nigerians with promises of automatic employment, contingent upon recruiting other individuals and paying various sums to secure job placements.

Preliminary investigations conducted by the Commission revealed that the operations of F&B are being aggressively promoted through social media channels and online forums, reflecting characteristics commonly associated with Ponzi schemes.

The SEC further clarified that Forsman & Bodenfors Ltd is neither registered nor authorized to solicit funds or conduct business within Nigeria’s capital market.

“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 statement emphasized.

As part of its investor protection mandate, the Commission strongly advised the public to avoid engaging with Forsman & Bodenfors Ltd or any of its representatives in connection with any capital market-related activities.

“The potential risk of losing funds to the fraudulent promoters of the entity is very high,” the Commission warned.

Verification Portal for Investors
To promote safety and transparency, the SEC reminded investors to always verify the regulatory status of any company offering investment opportunities by using its dedicated verification portal at www.sec.gov.ng/cmos.

“The investing public is further advised to VERIFY the status of companies and entities offering investment opportunities on the Commission’s dedicated portal – www.sec.gov.ng/cmos, before transacting with them,” the statement concluded.

The SEC reaffirmed its commitment to safeguarding Nigerian investors and upholding the integrity of the capital market ecosystem.