Alleged Nigerian boiler room exposed

A Los Angeles federal judge Tuesday froze the assets of a Nigerian national and his two companies, which are allegedly fronts for a boiler-room investment scheme that bilked more than 30 people out of $1.3 million.

Targets of the U.S. Securities and Exchange Commission complaint are Clement Ejedawe, 51, who lives in Westchester, and his companies, Innova Energy and Innova Leasing and Management.

The SEC alleges that Ejedawe, who uses the alias Clement Chad, ran a boiler-room operation that cold-called potential investors, promising monthly payments of $4,000 to $5,000 for every $50,000 invested in Innova’s oil and gas ventures.

In fact, the SEC’s Rosalind R. Tyson alleges, the oil and gas ventures were nonexistent and the investors’ money was used to cover Ejedawe’s personal expenses, including his apartment rent, credit card and car payments, and charitable donations to his church.

Ejedawe could not be reached for comment.

The SEC is seeking a permanent injunction halting the operation and an order that the defendant and his companies pay fines and repay all investors.

source: thedailybreeze

and also check out The Skeptics guide to some common scams, which include:

  • boiler room scams,
  • the Nigerian scams,
  • phone and telemarketting scams
  • ponzi scams,
  • retail scams
  • sweepstakes scams and
  • pyramid schemes.

 

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