SEC Blacklists Mekanism Marketing Ltd Over Alleged Ponzi Scheme

The Securities and Exchange Commission (SEC) has issued a high alert to the investing public, blacklisting an unlicensed entity known as Mekanism Marketing Ltd, which operates under the name “Mekanism.”

The regulator’s warning on Monday, February 16, comes amid a surge in digital investment fraud schemes, with the Commission describing the company’s operations as unauthorised and illegal under Ghanaian law.

According to the SEC, the scheme aggressively recruits victims through social media advertisements, promoting a structured “Job 1” to “Job 10” task-based earning system. Participants are encouraged to deposit funds under the pretext of engaging in high-yield capital market activities.

Anatomy of a Suspected Ponzi Scheme

Investigations by the SEC indicate that Mekanism Marketing Ltd operates a solicitation platform promising fixed daily returns tied to the amount of an investor’s initial deposit. To create a veneer of legitimacy, participants are required to perform vague digital tasks.

However, the regulator dismissed these activities as a smokescreen for what it considers a fraudulent operation.

“Participants are required to undertake vague and unspecified activities described as ‘Job 1’ to ‘Job 10’ as a basis for earning daily, monthly or annual income. The regulator considers the promised returns to be unrealistic and unsustainable, bearing characteristics of a fraudulent scheme designed to lure unsuspecting investors,” the SEC notice stated.

The Commission emphasised that the returns being advertised are structurally unsustainable and reflect characteristics typical of Ponzi schemes, where funds from new investors are used to pay earlier participants.

Breach of Ghana’s Securities Laws

The SEC noted that Mekanism is operating in direct violation of Section 109 of the Securities Industry Act, 2016 (Act 929), which governs Ghana’s capital market and mandates licensing for all market operators.

Statutory Breaches Identified:

• Act 929 (Securities Industry Act): Operating as a fund manager or investment adviser without a valid SEC licence.

• Companies Act, 2019 (Act 992): Unlawfully inviting the public to invest in securities without meeting statutory disclosure and registration requirements.

By operating without authorisation, the entity exposes participants to total financial loss without access to regulatory protection or compensation mechanisms.

Law Enforcement Collaboration

The Commission confirmed it is actively collaborating with law enforcement agencies to track down the promoters behind the scheme.

Under Act 929, individuals found guilty of operating illegal investment schemes face severe administrative sanctions, including fines and possible criminal prosecution.

“No person may operate as a market operator, broker, dealer, investment adviser or fund manager without a valid licence issued by the SEC… persons who contravene the Act are liable to administrative and criminal sanctions,” the Commission reiterated.

SEC’s “Verify Before You Invest” Campaign

Amid rising digital financial fraud, the SEC has renewed its public education drive, urging investors to verify the licensing status of investment platforms before transferring funds.

The regulator stressed that any investment promising “daily fixed returns” outside recognised banking or regulated capital market instruments should be treated as a major red flag.

Protecting the integrity and credibility of Ghana’s capital market, the Commission said, remains a top priority as it moves to dismantle unauthorised digital investment schemes.