SEC Warns Nigerians Against Fraudulent Ponzi Scheme F&B

The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians against transacting with a company known as Forsman & Bodenfors Ltd, commonly referred to as F&B, over its involvement in alleged fraudulent recruitment and investment schemes.

In an official statement, the SEC revealed that the company is being falsely promoted as the Nigerian subsidiary of a reputable Swedish advertising agency with the same name—an act the Commission described as having “obvious criminal intent.

Read Also:

• SEC Alerts Nigerians on Unregistered Investment Schemes
• SEC Emphasizes Investor Caution Amid Rise in Fraudulent Schemes
• SEC Urges Nigerians to Harness Demographic Dividend for Economic Growth

“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 Unregistered and Deceptive

According to the Commission, promoters of the entity are luring unsuspecting Nigerians with promises of guaranteed employment—contingent on recruiting other members and paying various fees to secure job placements.

Preliminary findings indicate that F&B’s activities are being aggressively marketed across social media platforms and online forums, resembling the structure of a typical Ponzi scheme.

The SEC made it clear that Forsman & Bodenfors Ltd is neither registered nor licensed to operate or solicit funds in 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 added.

Public Advisory and Risk Alert

As part of its investor protection responsibility, the SEC strongly advised the public to avoid all engagements with Forsman & Bodenfors Ltd or its affiliates regarding any form of capital market activity.

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

Investor Verification Tool

To safeguard investors, the SEC reminded the public to verify the regulatory status of any company offering investment opportunities via its official verification portal:

“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 SEC reaffirmed its commitment to protecting investors and ensuring transparency and trust within the Nigerian capital market.