From experience, investments that promise outrageous and quick returns have always been scam;and this is no different.It proves that hardwork,diligence and patience are superior ways of making a living.Examples are rife in these kind of failed promises like in the network marketing,crazy issuance of IPOs and the eventual stock market crash 2008/2009 in Nigeria.
The proprietor of a popular secondary school in Abakaliki, the
capital of Ebonyi State, Dr Pius (surname withheld), died recently.
Family sources attributed the death of the seasoned educationist, who
hailed from Ngodo village in Afikpo North Local Government Area of
Ebonyi State, to frustration arising from a multi million naira
investment gone awry.
According to an impeccable family source, “Dr Pius (surname withheld
by us) invested about N50 million in a wonder bank which promised
tantalising returns on investments but he lost all the money. The
promoters of the scheme had made promises to the effect that they will
soon begin to pay investors but after waiting endlessly for some years
without getting back his investment, he began to think and worry so much
that his health took a dip. And the man died.”
Dr Pius was one of the customers of Cash Flow ABI (American
Biographical Institute) Network Limited, an organisation which promoted
various schemes and offered extra-ordinary returns on investments to
its clients but had been unable to discharge its obligation to them for
about three years.
Indeed, the development is taking its toll on the thousands of
investors in Ebonyi State and elsewhere whose investments appear trapped
in the organization. It was learnt that some of the investors had
committed suicide while some developed such ailments as stroke and
hypertension which incapacitated them and, even claimed the lives of
many.
One of the investors or victims, Mr Leonard Ugama, a retiree,
recently told the reporter in his residence at Uburu in Ohaozara Local
Government Area of Ebonyi State: “Yes, many of the investors have died,
even somebody we may regard as the highest investor, the owner of a
secondary school at Abakaliki died as a result of frustration. He threw
in all he had worked for and it got trapped. Some died in Uburu here
too.”
Another source said: “Many of the Cash Flow investors are dying and I
do not think it is natural death. Many of them who were healthy not
long ago have been plagued by all manner of ailments. It has to do with
their investments which vanished just like that. You know, we are poor
people, so if you lose all you have laboured for in one go, there is
nobody to help you. So, many of them are turning into vegetable.”
Rev. Charles Egbo, ICT manager of Cash Flow, Ebonyi State chapter,
told the reporter that the network had many packages in online business,
building investment, robot investment, car investment, and soft loan
facility. He added that the organisation was “having close to N152
million investments from Ebonyi State and more than 1800 clients in the
state,” but a source hinted that the ‘investments’ could be much more
than that amount. “I believe that they are indebted to Ebonyi people to
the tune of more than N500 million. It is difficult to see a family in
the community without an investor or victim as the case may be. If you
send money to your aged parents in the village, they will go and
‘invest’ it and go hungry. One elderly man was boasting to his son that
he will surprise the young man,” the source disclosed.
It was gathered that “the investors were spread across various social
strata. Educated, semi-educated and stark illiterates. Professionals,
civil servants, businessmen and artisans all went for easy wealth and
invested handsomely. In fact, anyone who was not part of the deal was
regarded as lacking business acumen.”
How the cookie crumbled
Many of the Cash Flow investors have been weeping in the valley of
tears for years. They are dancing on the canvass of despair, sorrow and
grief following the disappearance of their life savings and loans
obtained with running interests from cooperatives, among other sources.
Madam Rachael Nnennaya Chukwu, a teacher, is an investor with Cash
Flow. Indeed, for her, it is like a bad dream. Cash Flow lifted her to
an Olympian height, so to say and plunged her into a deep pit of shit.
The reporter met her recently and she told a heart touching story.
According to her, the investment nearly tore her family apart even as
her integrity is now at stake. Her son in-law, brother, sister and
church invested through her but their investments went down the drain or
so it seems.
Hear her: “On October 1, 2011, I met one headmistress, Mrs Ebere Aja
and she was introducing Cash Flow. She asked me if I knew anything
about Cash Flow. I wanted to explain it in economic terms but she told
me to stop blowing grammar. She said that Cash Flow is an organisation
that rewards investors with 70 percent of their investment within 45
days. I asked her to explain it properly and she did. She told me that
if I was ready at the time that I could invest and in 45 days I would
get an alert of 70 percent of what I deposited in the bank. I told her
that I did not have money but that there was some money in my custody
and that I will go and withdraw it and she said okay. The money belonged
to the Mothers Guild in the church and I am their president.
“On Ocbober 13, 2011, we went to the bank in Abakaliki where the
money was and we withdrew it. The amount was N700,000. I came home and
met them at the Cash Flow office. I told them that I wanted to invest
with them and they gave me their account number in Diamond Bank and
asked me to go and deposit it and come with the teller so that they will
open a file for me. So, I went and deposited the N700,000 in the
account they gave me which they said automatically becomes my account;
they said I would be withdrawing my dividends from that account. After
depositing the money, I brought the teller and they opened a file for me
and gave me a receipt. They also gave me a certificate, showing that I
had become their client. I still have the certificate. I did not want to
take the money because it wasn’t mine; it was God’s money and I wanted
to know if what they were saying was true.
“They didn’t give me alert until March 2012. That March 2012, they
went round announcing that there will be verification and
documentation. It was even announced on the radio, that the owners of
the investment were coming to Ebonyi State and Uburu was the
headquarters for the state. After checking their ledger, they discovered
that I had not received any alert. After the documentation, they said
I had N1.7million and asked me if I wanted the money. I told them that I
wanted N1.6million and immediately they issued me a UBA cheque for
N1.6million. They told me that they had five more days to stay at Uburu
and that they were not fraudsters. They said that if I encountered any
problem at the bank I should call them with the number they gave me. I
went to the bank at Abakaliki and cashed N1.6million.I left N100,000 in
the account. I said it was God’s money, so I used the money to buy
Toyota Bus for the church. I bought the bus for N1.2 million but we used
the balance to b ring back the bus from Togo, registration and seats.”
Madam Chukwu became a super star in the community. She was the
cynosure of all eyes wherever she went and everyone wanted to be like
her. She continued: “With the way I spent the money, the news spread
like a wild fire. Wherever I went, people pointed at me, saying this is
Madam Chukwu who bought a bus for the church. Individuals and groups
were coming, asking me how it happened and I explained everything to
them. On account of that, people were rushing to invest with Cash Flow.
In August 2012, they brought another promo, saying it attracted 50
percent interest on investment because as at that March 2012, they had
reduced the interest to 20 percent. But I got 50 percent for November
and December 2011 and 20 percent for January, February and March 2012.
That was how they calculated my money.
“When the CEO, Engineer Philemon Gora, came with the 50 per cent
promo in August 2012, he also reduced the days of maturity to 30 days
from 45 days. The news spread to nooks and crannies of Ebonyi State and
people rushed to deposit money. The owner of Cash Flow came himself to
an old hotel in Uburu, Chimanelo Hotel and announced that his intention
was to enrich people. There was a sea of human heads there. He said
that he was not a politician and there was no politician who could
compete with him in terms of money. He usually quoted Malachi 3:10,
imploring everyone to pay tithe on whatever they were paid. He said no
investor in Cash Flow will ever be broke. So, so many people invested
within the period.”
Madam Chukwu added: “Many people borrowed money with running
interests to invest. I told my in-law who was working with the bank and
many of my relatives. I told them I had seen the pathway to making
money. I also invested another N1.55 million plus the N100,000 I already
had with them. So, I had a total investment of NI.65 million. They
said that in 30 days “you will get 50per cent dividend on your
investment and if you want to withdraw your investment you can do so
after 30 days.” Since that August, till December 2012, people were
filling forms to withdraw but nothing was given to them. Then people
started crying because many of them had borrowed the money they invested
with the intention of paying back the loans.
“Gora later announced that everyone should go and open an account in
a micro finance bank on Ogoja Road, Abakaliki. He categorized their
clients according to the value of investment. He said that those who
invested N5million and above would be getting a certain amount of money
weekly until everything is paid if they so desired. And those who had
between N1 million and N5 million would be receiving a certain amount of
money through the micro finance bank. We rushed and opened accounts in
the micro finance bank but nothing has been paid ever since. Those I
introduced to the scheme include my brother, sister, son in-law and the
church.”
Madam Chukwu has been under severe pressure since the investments got
stuck. She had been called names and accused of cheating. It almost
destroyed her family. “I have been on fire since that time, as if I
embezzled the money. The reason they gave me money was that they saw
what I did with money from the scheme. But it appeared to them that I
did not invested the money or that I refused to return the money to
them. This thing caused a lot of problems in my family; it almost
separated my son in-law and I because he brought N1 million. He
appreciated what I did when I bought the vehicle for the church because
I explained everything to him but when the money got trapped,
everything changed. They trusted me but with what happened, trouble
arose.
“I am pleading for the man (Gora) to bring back my money. It is one
of my prayer points. If it were my money, I would have endured it but it
made me a liar. If I get the money, I will prove to them that I did not
dupe them,” she said in an emotion soaked voice. It was learnt that “a
few other investors who embraced the scheme early made bountiful harvest
and began to spread the ‘good’ news in the community and beyond. To
convince anyone who had an iota of doubt, they flaunted the gains they
had made within few months of investing in the scheme and even boasted
about what they would do with money in the near future.
“As the early beneficiaries spread the good news as it were, many
other investors came aboard. Many people who maintained accounts in
regular banks withdrew all they had in them and invested same in the
scheme. Even those people who didn’t have money of their own did not
want to be left out. Hence they went to borrow from any available
sources, including money lenders, cooperative societies and traders
unions, with running interests. The situation was such that the scheme
was announced in the church and worshippers were encouraged to take up
the opportunity.”
Like father, like sons
Mr Leonard Ugama, a pensioner, also narrated to the reporter how he
invested in Cash Flow. Ironically, he didn’t invest alone; two of his
sons were also investors in the ill-fated transaction. He said: “In
November 2011, an old man told me that there was an announcement in
their church that there was somebody who wanted to make people rich. He
said that the person was a Christian, that he was interested in helping
people. He said that his pastor’s wife invested with the man and she
had been getting some interest. They referred me to the Cash Flow
office in Uburu. I went there and they showed me the returns that people
had been getting. So, I decided to invest.
“My first investment was on November 4, 2011; I invested N250,000
that time. When it started yielding, I opened another one with a little
less than N250,000. I continued until I reached the fourth and fifth
entries. They were paying us as you demanded; they were giving us 20per
cent for 45 days. So, after sometime they said that they were going to
do promo and that the promo will attract 50per cent interest. Many
people like me sourced money and invested in the promo which they called
Local Robot. From the time of the Local Robot, we started having
problems. I was expecting that when I get money from the ones I had
invested earlier, I would put it in the promo but it didn’t work that
way because what I was expecting was never paid to me. Robot, we started
having problems. I
“Later on, we started hearing the rumour that the people were having
problems and we were waiting. One day, the owner of Cash Flow came by
himself to address us. He told us that people were jealous of the
people investing with him. He said that very soon, he will be free and
start paying us, which he never did. We have decided to wait until
whenever it is God’s wish that we shall get our investment back.
“I invested N1.3million in the promo. Before the promo, I had N646,
800 in the scheme. There was a time he asked us to pay N50,000 to
facilitate the release of our funds and some of us did. In my immediate
family, we were three that invested – my two sons and me. One of my
sons invested N700,000 in the promo and had a balance of N20,000 from
other entries he made. The other one invested N200,000 plus N20,000
from other entries he made. They do not answer phone calls but when you
send them a text, anybody there can reply. It was about a year ago that
we had any form of communication. He has made us suffer beyond our
expectation. My appeal, therefore, is that he should do something to
help by giving us at least what we invested, even if the dividends are
not forthcoming. Many of the investors have died, even somebody we may
regard as the highest investor, the owner of a secondary school at
Abakaliki died. Some died in Uburu here.”
In an earlier report, some of the investors had lamented their
inability to access their investments. Mrs. Florence Chukwu, a retiree,
had disclosed that she invested N120,000 without getting anything in
return. Mrs. Irene Ada Akpo, a school principal, said that she invested
millions of naira in the scheme. She said: “I joined in December 2011
with the sum of N500,000. I was getting my interest up till June 2012
before the CEO introduced what he called ‘promo’ which he said that if
someone puts a certain sum, the interest would be 50 percent. So, some
of us even borrowed money to join. I personally at that period put in
N1. 6million. Then, we waited and the next month when we were supposed
to have gotten our interest, nothing was forthcoming. We later learnt
that the EFCC were interrogating him somehow. We continued to get
information that they will soon be over it and that about eight or nine
of his accounts were closed, that we should be patient. Then, he came
to Uburu and had a seminar at Chimnelo Hotel. Many of us attended. In
fact, the hall was filled to the brim. He narrated his ordeal in the
EFCC, how they asked him to open a micro-finance bank and that he
struggled to open it. He gave us some papers he called modalities for
payment. He told us that the EFCC said that he should pay us our capital
but that he was willing to add the interest there. And that was the
reason he refused to pay his clients their capital only. Most of us
believed him. They gave everybody the paper tagged modalities for
payment; some of us borrowed money again to pay into one account called
Gadonkay GLC or something like that. I personally borrowed N50,000 and
paid it in so that my money will come out but up till this moment, I
have not seen anything”.
Mrs Precious Odi said that she invested N650,000, adding: “To
worsen my case, I collected the money I deposited with Cash Flow from
someone and I’m paying interest on it up till now. So, each time I
collected my salary, I use it to service my debt, leaving me with
nothing.”
Ugo Okolie, a teacher at Community High School, Uburu invested
N70,000 while Mrs.Orienta, also a teacher invested over N60, 000.
Another teacher, Victor Nnenna Ene, also a teacher, lost more than
N70,000. Mrs Lucy Umahi, council staff, also invested N50,000.
Mr Onu Agodichi Emmanuel committed N220,000 and Hon. Thomas U.
Chukwu, invested over N1million. According to Chukwu, “the CEO came
sometime ago and addressed us. He told us that those with deposit worth
up to N1million will be rewarded with accumulated interests of over
N1million. He told me to pay N50,000 into his account with Diamond Bank.
He called it counter fund, saying it will facilitate repayment of my
deposit. He also told me to go to a micro finance bank in Abakaliki to
open an account with N1,000. He said that once we comply with these,
they would commence payment to all depositors within a space of one
week.”
About three years later, no investor had been paid.
Why payments stopped
Rev Egbo had told the reporter that the firm had “problems with
Securities and Exchange Commission (SEC) which made our accounts to be
closed. Up to eight of our accounts were closed; we had no access to
our accounts, that was why we couldn’t pay again. But the board of
directors and CEO are processing the matter with SEC. They have
finalized their investigations with him. They went to the banks with him
and inspected the accounts and saw that the whole money was still
intact. That what he was saying were not mere fabrications or
falsehood. The CEO, Engineer Philemon Gora, a native of Kaduna State,
has been a Christian and truthful somebody. Since we came to work with
him, we’ve not seen him misbehaving or maltreating or intimidating any
client. And he is somebody who doesn’t want to hear that a staff
harassed a customer.”
It was learnt that the firm also had issues with the CBN, EFCC and
ICPC. The reporter wanted to confirm the situation with the Kaduna
office but the call rang out without response. On January 19, 2015, an
sms was sent to the phone number on the certificate of investment issued
to customer but there was no reply.