The Fall of Chinmark & Ovaioza: Will Nigerians continue to invest in Ponzi schemes after this?

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Lots of Nigerians are now terrified about making certain investments, given the fall of Chinmark Group, and the recent worries being drawn to investors by the inability of Ovaioza to pay her investors.

Chinmark Group had been presented as an establishment with several packages of ROI upon partnership in any of their arms which included Real Estate, Hospitality, Agriculture, and other businesses. But in the wake of its inability to pay its investors, the truth was unravelled – it was a Ponzi scheme.

While Mr. Chinedu Ijomah(the director) is claiming to have been affected by the regulations of SEC, truths have appeared from several mouths, stating that he had changed the documents of the establishment’s properties, including the Chinmark Paradise Hotel in Enugu, which was renamed Bridge Suites.

 

It’s apparent that Mr. Ijomah knew what he was doing all along, and while investors are gathering into different groups to file lawsuits against him, it’s seeming unfortunate that they may never get their money back.

Ovaioza who runs another investment outfit is currently being dragged by investors on social media. The young lady from Kogi state is said to have sold some lies about how big her food storage business is. And when she started calling for investors, making it seem like she was helping them, a lot invested in her business. I believe the said business was going well without being noticed as a Ponzi, until people stopped receiving their returns on investment.

From observations, people who were scared of being affected in the similar way Chinmark dealt with its investors, were pulling out their funds. And when it became glaring that the scheme will be exposed, she stopped paying. She had also said SEC was responsible for the delay in payment, but the truth has been manifested in recent times, revealing that she’s also a fraud – her storage business is not as big as claimed, and investors’ money was being diverted into assets and other personal businesses.

Certain things were common in the heist the two establishments pulled:

They did plenty of giveaways to people on social media – this was meant to be an advertisement strategy which should be enough to make you say “the money is there.”

They spent lavishly on influencers. Chinmark paid influencers to advertise, while Ovaioza blessed influencers with gifts, thereby making them her friends. People invested because certain influencers they looked up to, were friends with the said lady, and since they were people of high integrity, it was assumed that she was one too.

And thirdly, they collected billions as capital for investment.

I remember a young man I warned not to invest in Chinmark. He told me that the man has structures and businesses enough to provide the profits he boasts of giving his investors. I made him understand that “Let’s Partner With You Ltd” which defrauded people of billions about 6 years ago, had the same format the Chinmark brand was presenting. Made him understand that the establishment was a more modern version of what hit thousands of investors years ago.

He didn’t listen and is currently weeping about how to recover his 6-million-naira capital.

In the wake of these events which are happening after the likes of Eatrich Farms and MBA Forex scammed people, will Nigerians continue to invest in Ponzi schemes?

The sad answer is yes! Most Nigerians are lagging in financial literacy. This makes them more gullible. Some will cry this year, but whenever another scheme is presented next year, people will still fall victims.

All the new establishment needs to do is to present a well-packaged mirage to look like something solid, and if possible, use God as the motto, just like Chinmark would say “All we have, God gave us.”.

 If SEC, EFCC, and other agencies are strong on this, it will really reduce the guts of the Ponzi schemes.


Written by: Edward Amah

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