The Securities and Exchange Commission (SEC) has raised a strong warning to the Nigerian investing public over the operations of Forsman & Bodenforms Limited, describing the firm as a fraudulent entity masquerading as a legitimate business.
In a statement issued on Monday and published on its official website, the apex capital market regulator cautioned Nigerians against investing in or engaging with the company, stressing that Forsman & Bodenforms (also known as F&B) is neither registered nor authorized to operate in Nigeria’s capital market or solicit funds from the public.
The Commission disclosed that preliminary investigations revealed that the promoters of F&B were parading the company as the Nigerian branch of a renowned Swedish advertising agency, Forsman & Bodenfors, in a bid to mislead unsuspecting citizens.
According to SEC:
“The attention of the Securities and Exchange Commission has been drawn to the activities of Forsman & Bodenfors Ltd, which is paraded by its promoters as the Nigerian branch of a Swedish advertising company bearing that name with obvious criminal intent. The promoters of this fraudulent Nigerian entity go about promising Nigerians automatic employment as compensation for recruiting more members, who are lured to pay various sums of money for various positions in the company.”
The Commission noted that this is a classic Ponzi-style recruitment scheme, where victims are enticed to recruit others in exchange for promised benefits, only to lose their money in the end.
SEC described Forsman & Bodenforms’ activities as fraudulent and illegal, adding that its operations bear clear indicators of a Ponzi scheme. The regulator urged Nigerians to avoid all transactions with the company, warning that the risk of financial loss is extremely high.
“The public is hereby advised to refrain from engaging with Forsman & Bodenfors Ltd or its representatives in respect of any business in the Nigerian capital market, as the potential risk of losing funds to the fraudulent promoters of the entity is very high,” the statement emphasized.
To protect investors, SEC reminded the public to verify the authenticity of any company offering investment opportunities by visiting its Capital Market Operators (CMO) verification portal at www.sec.gov.ng/cmos.
The Commission reiterated that only registered capital market operators are legally permitted to solicit funds from Nigerians, and any company not listed on its portal should be regarded as unauthorized and potentially fraudulent.
This warning adds to the growing list of investment scams targeting Nigerians through social media promotions, fake employment promises, and high-return offers. Financial experts have consistently urged citizens to be wary of schemes that guarantee unrealistic profits or require payments for job placements.
A Lagos-based investment analyst, Mrs. Ifeoma Anene, told Vanguard that such scams thrive because of the country’s harsh economic conditions.
“People are desperate for quick income and jobs, so scammers exploit that vulnerability. The SEC’s warning is timely because these Ponzi schemes have now shifted from purely online investments to recruitment-driven job scams.”
In recent months, SEC has intensified its campaign against illegal investment operators, shutting down several platforms defrauding Nigerians under the guise of cryptocurrency, real estate, and forex trading.
Investors have been urged to follow due diligence procedures, including verifying a company’s regulatory status, consulting licensed financial advisors, and avoiding offers that sound too good to be true.
As the SEC continues its crackdown, Nigerians are advised to remain vigilant and report any suspicious investment activities to the Commission immediately.