Prime FMS enters CRFIN Blacklist

prime fms18 June, Lagos – As with many other scams, Prime FMS company has been discovered by the CRFIN to promise unrealistic returns, with little or no emphasis placed on the risk involve. This has prompted the the addition of the firm to the CRFIN black list as the 46th member.

The independent Russian self regulatory body discovered the company and its fraudulent promises during monitoring of citizens’ addresses. The company promises guaranteed profitability without guarantees of paying money funds back and it has signs of a false positioning as a trust-management company.

The CRFIN in its independent regulator’s report stated that “Potential clients are offered trust management of money funds and according to the trust management contract the company promises to provide minimal profitability of 80% from the invested sum within 90 calendar days”. The company has failed to specify its business model, therefore lacking a sufficient level of transparency. This therefore makes its operations look very much like a ponzi scheme, such that existing clients are paid out of new deposits from client. Niether has the firm given any information of authorization of licensing to carry out financial or investment activities or handling of client funds.

A few days back, the regulator also added 22 Groups Ltd to the CRFIN Blacklist. The company operates via the web address, and deals with various Forex products, ranging from academics, investing advice and its trading platform. According to the CRFIN report, 22 Group also falsely claims to hold the necessary license to carry out its activities in the region.

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