Chinmark group by Marksman Ijiomah
Mr Marksman is 32 years old and started off his business as a construction company and gradually expanded from there, in 2018/2019 he started off the investment arm of his company called Finafrica . At first his returns on investment went from 10% monthly to 5% and settle on 2% -4.5% which looked safe.The company before 2021 claimed to be invested in Oil and gas, Medical supplies, farms, real estate and construction but with the inflow of investment funds from investors it also expanded to transportation, logistics, hospitality and restaurants.
The company grew mostly using social media influencers, mainstream media , pastoral and God blessings endorsement, 1% referral bonus on investment and 5% referral bonus on construction, philanthropy gestures, street engagement, road construction , give away, tertiary institution endorsement , motivational speaking , a family oriented man personae , public speaking engagements in churches and institutions and a seeming convincing knowledge of business . The company had over 150 staff worldwide so one would assume that they had a managerial structure but recent revelations has revealed that the company is run by completely unqualified persons and business novice .
With influx of fund , the company kept expanding and regularly updated her investors on asset procurement and expansion progress in different countries. The company showed proof of expansions and investment and a claim of over 40bn in asset. As at last check on my personal knowledge, the company had landed assets in port harcourt, Enugu, Imo, Anambra, Abuja, Lagos, Abia, Akwaibom and out of Nigeria.The company is said to be indebted to investors up to 13.5billion naira and claims that they had no issues prior to the release by the SEC and subsequent freezing of account.
What went wrong?
The company took in more investors than it actually needed and could sustain, until it proves that the investors debt obligations were serviced by existing business which mere calculations will show highly impossible , it is obvious that new investors money serviced old investors obligation. The company was heavily invested in too many capital projects and expansions that was unnecessary with short term loans, there was too much money spent on reckless ventures, too much money spent on the branch of the company called the Chinmark foundation that was solely responsible for its CSR. The company lacked any kind of managerial expertise and refused to take professional advice on conducts as it ran its business like a family business, it had too many staff members and influencers on their payroll doing absolutely nothing but scouting for investment , the oil and gas business and other unlisted business seems to be a hoax as one with sense would know it was capable of settling investors so just like other business. The company’s owner lived a very extravagant lifestyle and spent money which now looks like investors fund on his lifestyle. This company is still in the best position to pay investors if there is sincerity. There has been no arrest made as he seems to be buddies with the people who should arrest and a quick check of legalities for those who have attempted to make arrest will tell you that it is a waste of time as his lawyers will get him out. Even though he is a free man and currently in talks with his investors on a way forward.
Subject to be corrected