O Group Makerwhich filed a request for judicial recovery in the São Paulo Court this Sunday (1st), is in the sights of CVM (Securities Commission) due to one of its money-raising models and promises of high profitability to investors, according to an investigation by CNN.
It turns out that the company has been late paying SCP (Society in Participation Account). In this model, Fictor (ostensible partner) runs a business and the investor (participating partner) contributes resources and receives part of the results.
Based on this scenario, Abai (Brazilian Association of Investment Advisors) consulted the CVM about its actions.
The entity questioned whether CVM is aware of the funding model, which is outside the regulated market, and about the promises of high profitability for some of the products. Some of the applications projected annual gains of up to 18%.
Abai raises concerns about the possible lack of transparency of this type of model, which falls outside the CVM’s jurisdiction.
In a note on the case, Abai limits itself to recommending that investors “be alert to promises of high, quick or risk-free gains”. “Before investing, it is essential to check whether the company, the professional and the product are duly authorized and/or registered on the websites of regulatory bodies, such as the Securities and Exchange Commission, the CVM, and the Central Bank”, he adds.
The CVM said in a statement that the matter is being analyzed within the scope of a process currently being analyzed by the Superintendence of Securities Registrations, but that it “does not comment on specific cases”.
Fictor was contacted, but did not respond until the publication of the report.
The Fictor Group gained the spotlight last year when it made a proposal to buy Banco Master. The institution even claims that the “reputational crisis” generated by the attempt contributed to the deterioration of the institution’s financial situation.
Until the day before the liquidation of Banco Master, Fictor had received approximately R$3 billion in contributions through its participating partners. From this date until the 30th, money withdrawal requests reached around 71% of this amount, according to the institution.
