SEC Warns Public Against Unlicensed Investment Scheme Promoted by Mekanism Marketing Ltd
The Securities and Exchange Commission (SEC) has cautioned the investing public against engaging with an unlicensed investment scheme being promoted by Mekanism Marketing Ltd, warning that the entity is not authorised to operate in Ghana’s capital market.
In a public notice, the regulator stated that Mekanism Marketing Ltd, also known as “Mekanism,” has not been licensed, approved or registered by the Commission to undertake any capital market activity. It stressed that any investment dealings carried out by the entity are therefore illegal and unauthorised.
According to the SEC, available information indicates that the scheme is being actively promoted online through social media advertisements and other digital platforms, where members of the public are solicited to deposit funds for investment purposes.
The Commission noted that Mekanism Marketing Ltd reportedly promises fixed daily returns, with the level of returns varying based on the amount invested. Participants are also said to be required to perform vaguely described tasks labelled “Job 1” to “Job 10” as a basis for earning daily, monthly or annual income.
The regulator described these promised returns as unrealistic and unsustainable, warning that the scheme exhibits characteristics consistent with fraudulent investment operations designed to lure unsuspecting investors.
Citing Section 109 of the Securities Industry Act, 2016 (Act 929), the SEC emphasized that no person or entity may operate as a market operator, broker, dealer, investment adviser or fund manager without a valid licence issued by the Commission. It added that persons who contravene the Act are liable to both administrative penalties and criminal sanctions.
The notice also referenced the Companies Act, 2019 (Act 992), which prohibits companies from inviting the public to invest in their securities without meeting the required statutory and regulatory conditions.
The SEC disclosed that it is collaborating with relevant law enforcement agencies to identify individuals behind the suspected scheme and to take appropriate enforcement action.
The Commission urged investors to exercise caution and to verify the licensing status of any individual or entity offering investment products or services before committing funds, underscoring that such due diligence is critical to protecting investor interests and safeguarding the integrity of Ghana’s capital market.
