Nigerian investment platform, Chaka, accused of misinforming investors in US
A Nigerian digital investment platform, Chaka Technologies Limited, and its investment broker, Citi Investment Capital Limited, have been accused of misinforming investors in the United States.
Ripples Nigeria obtained a US Securities and Exchange Commission (SEC) document on Tuesday, listing Chaka and Citi Investment Capital among 58 unregistered entities that use misleading information to solicit non-US investors.
The U.S SEC periodically releases Public Alert: Unregistered Soliciting Entities (PAUSE) to prevent investors from falling victims to suspected fraudulent investment firms.
Chaka, founded by Tosin Osibodu, offers Nigerian investors to invest in brokerage and investments facilitated by Citi Investment Capital Limited.
Citi Investment Capital is a trading license holder of the Nigerian Exchange Group (NGX), the capital market authority.
Firms on the PAUSE list are accused of providing inaccurate information about their affiliation, location, or registration, and under US securities laws, firms that solicit investors must register with the SEC.
Chaka and Citi Investment Capital were included in the list after several complaints from investors.
The document read: “you should understand that the inclusion of a name on these lists does not mean that the SEC has concluded that a violation of the US securities laws has occurred or that the SEC has made any judgment about the merits of the securities being offered by these entities.”
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