SEC cautions public against unlicensed Mekanism Investment Scheme

The Securities and Exchange Commission (SEC) has cautioned the public against investing in an unlicensed scheme being promoted by Mekanism Marketing Ltd, also known as “Mekanism.”

In a public notice, the Commission stated that Mekanism Marketing Ltd is neither licensed nor authorised to operate in Ghana’s capital market. As such, any investment activity undertaken by the entity constitutes illegal and unauthorised capital market operations.

According to the SEC, the scheme is being advertised online through social media and other digital platforms to attract deposits from the public. The company reportedly invites individuals to invest funds in exchange for fixed daily returns, with earnings tied to the amount deposited.

The regulator further indicated that participants are required to carry out unspecified tasks labelled “Job 1” to “Job 10” to qualify for daily, monthly or annual income. The SEC described the promised returns as unrealistic and unsustainable, noting that the scheme bears the hallmarks of a fraudulent operation designed to deceive unsuspecting investors.

Citing Section 109 of the Securities Industry Act, 2016 (Act 929), the Commission stressed that no person may operate as a market operator, broker, dealer, investment adviser or fund manager without a valid licence issued by the SEC. Violations of the law, it said, attract administrative and criminal sanctions.

The SEC also referenced the Companies Act, 2019 (Act 992), which prohibits companies from inviting the public to invest in their securities without meeting statutory requirements.

The Commission disclosed that it is working with law enforcement agencies to identify those behind the suspected scheme and take appropriate action.

It urged the investing public to verify the licensing status of any individual or entity offering investment products before committing funds, as part of efforts to protect investors and preserve the integrity of Ghana’s capital market.