The Director General of the Securities and Exchange Commission, Daniel Ogbarmey Tetteh, who made the revelation noted that the public needs to be wary of such institutions to avoid being prey to scams.

He said, “We have received some notice from people through our channels by which people notify us of these schemes, and we will follow due process to deal with the matter.”

“It is important that investors should ask questions before they place their money with these firms and one of the fundamental questions is ‘what is the underlying investments’? Because if anyone promises you high returns it means that there are high risks and you are better advised to look for the exit,” he added.

Revocation of license

The Securities and Exchange Commission (SEC) in April 2019 revoked the licenses of five investment companies.

The firms include Georgetown Capital Partners Ltd, Equity Capital Ltd, Index Analytics Ltd, DM Capital Ltd and Oxygen Advisory Ltd at their own risk, according to the regulator.

SEC revoked their licenses pursuant to Section 122 of the Securities Industry Act, 2016 (Act 929).

The move by the Securities and Exchange Commission is to help sanitize the market.

About the Golden Empire and Loom

Golden State Empire Legacy deals in the export and import of gold, gold investment, mining services, smelting and assaying, financial services, jewellery, logistics, real estate development, hotel management, fashion and clothing line and merchandise.

It is led by Miss Joana Gyan from the royal family at Juabeng in the Ashanti Region of Ghana and is the company’s Chief Executive Officer (CEO). She leads the team alongside Benedict Kwesi Obeng, Ambassador Gladys Kudjoe, Emmanuel Kwabena Asante, Donald Emmanuel Manyo-Plange and Anil Kansara who make the Board Members of the company.

Loom, on the other hand, is a scheme which targets young people through social media and gets them to recruit other people and invest money, much like a pyramid-selling scheme.

The Loom Pyramid Scheme is not new to the world. Last month, Daily Mail UK reported that the scheme has resurfaced online all over the world, with different names such as 'loom circle', 'fractal mandala' and 'blessing loom'. In Ghana, its central name is Loom with individuals creating their own WhatsApp groups to get individuals to sign on to it.