Shock as SEC warns against investment club founded by retired police commissioner

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

The Securities and Exchange Commission (SEC) has stated that Alpha Trust Investment Club (ATIC) and its investment plans are neither registered nor sanctioned by the capital market regulator.

ATIC was co-founded by Aderemi Adeoye, a retired police commissioner, in June 2018.

SEC Declares Former Police Commissioner’s Investment Club Unregistered and Unauthorized
Source: UGC

ATIC in the eye of the storm

A group submitted a petition to Kayode Egbetokun, the inspector-general of police (IGP), requesting an investigation into an alleged fraud and misappropriation case involving the former commissioner of police in Anambra state.

The petition, dated January 30, accused Aderemi Adeoye of running a "Ponzi scheme" and misusing funds intended for investments in ATIC.

However, on May 3, Adeoye refuted these accusations, stating that the claims were baseless.

He mentioned that the club had communicated with the Federal Inland Revenue Service (FIRS) and the SEC to ensure their activities were within legal boundaries.

SEC warns against investment in ATIC

According to a statement released by the SEC, the investment club's activities violate the Investments and Securities Act of 2007.

The statement partly read:

“The attention of the Securities and Exchange Commission (“the Commission”), has been drawn to the activities of Alpha Trust Investment Club, an entity that is believed to be facilitating investment to the public.“The Commission hereby notifies the investing public that Alpha Trust Investment Club and the investment schemes it is promoting are not registered/authorized by the Commission."

The commission cautioned investment promoters and the public that operating as an investment professional or conducting investment and securities business without prior registration with the Commission is a serious violation of the Investments and Securities Act of 2007.

The SEC advised the public to always check the registration status of any individual or organization, as well as the investment products being promoted, on the commission’s website before engaging with them.

Source: Legit.ng