The Securities and Exchange Commission (SEC) has warned the investing public against dealing with unlicensed entity known as Mekanism Marketing Ltd (operating as “Mekanism”).
The regulator gave warning in a statement issued in Accra on Monday amid a surge in digital investment frauds, with the Commission branding the firm’s operations as both unauthorised and illegal under the laws of Ghana.
“The scheme, which primarily recruits victims via aggressive social media advertisements, has been flagged for using ‘Job 1’ to ‘Job 10’ task-based systems to lure unsuspecting citizens into depositing funds under the guise of high-yield capital market activity,” it said.
Investigations by the SEC according to the statement revealed that Mekanism Marketing Ltd operates a structured solicitation platform, promising investors fixed daily returns that fluctuate based on the initial deposit amount.
To gain legitimacy, it said the scheme required participants to perform unspecified digital tasks.
However, SEC was quick to dismiss these activities as a smokescreen for a fraudulent operation.
The regulator noted that the returns being promised were not only “unrealistic” but structurally “unsustainable”, characteristic of classic Ponzi schemes that rely on new deposits to pay off older investors.
“Participants are required to undertake vague and unspecified activities described as ‘Job 1’ to ‘Job 10’ as a basis for earning daily, monthly or annual income. The regulator considers the promised returns to be unrealistic and unsustainable, bearing characteristics of a fraudulent scheme designed to lure unsuspecting investors,” the statement said.
The SEC pointed out that Mekanism is in direct breach of Section 109 of the Securities Industry Act, 2016 (Act 929).
“This law is the bedrock of Ghana’s capital market, ensuring that only vetted and capitalised entities handle public funds. By operating without a valid licence, Mekanism exposes its ‘investors’ to total loss with no legal recourse through the regulator’s protection funds,” she said.
Act 929 (Securities Industry Act): Operating as a fund manager or investment adviser without a valid licence.
Act 992 (Companies Act, 2019): Unlawfully inviting the public to invest in securities without adhering to statutory disclosure and registration requirements.
The Commission has confirmed that it is no longer just monitoring the situation but is now actively collaborating with law enforcement agencies to track down the promoters of the Mekanism scheme.
Under Act 929, individuals found guilty of running such schemes face severe administrative fines and potential criminal prosecution.
“No person may operate as a market operator, broker, dealer, investment adviser or fund manager without a valid licence issued by the SEC… persons who contravene the Act are liable to administrative and criminal sanctions,” the Commission added.
BY TIMES REPORTER
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