The media hype around HO corn was so much that perspective subscribers will abandon their sixth sense and simply invest without any question.
The agritech startup which describes itself as Nigeria’s Largest Maize farm offering backed up the media and online publicity with an outrageous and impossible 50% return on investment within 6 months. This means if a subscriber buys a unit for 100,000, he or she should get N150,000 in 6 months.
As a result of the largely unreasonable Return on Investment, unsuspecting Nigerians invested their hard-earned money in HO Corn. Unfortunately, these Nigerians are now calling out HO Corn for delaying the payment of their due dividends.
About HO Corn (Website)
HO Corn produces and processes superior fresh and dry corn to supply to the local Nigerian market whose domestic annual consumption has experienced a phenomenal growth rate from 9.41% 1960 reaching an all-time high of 214.05% in 1990 and maintaining a steady growth rate till date.
To pursue our passion for corn farming as a solution to the hunger crisis in Africa and a contributor to the continents Agricultural industry, HO CORN was borne by, Harrison O. Andrew from 1000-acre farmland in Iseyin, a local government area located in the great OYO State, Nigeria.
HO CORN increased capacity to 30,000 acres recently as a step to accommodate large scale maize farming, increase opportunities for investors and provide massive employment for Nigerians to achieve our goal to become a household name in corn farming and production, surpass our expectations with that of our investors, provide financial stability and sustain it not just in the country, but Africa and globally.
The minimum a sponsor or subscriber can invest is N100,000 while the minimum number of units you can invest in one (1) and you can invest as many units as you desire subject to availability. A unit represents one (1) acre of our farmland and you get a 50% return on an investment after 6 months.
Nairametrics look into HO corn-A Ponzi Scheme
There is no way such an offer of 50% guaranteed in 6 months won’t raise any eyebrows. This prompted Nairametrics to look into HO corn and all pointers from their ‘investigation’ showed that the startup’s offering is nothing but a Ponzi scheme.
Nairametrics went the extra mile of inquiring from the Securities and Exchange Commission (SEC) the status of HO Corn and even spoke to SEC’s spokesperson Efe Ebelo.
“SEC confirmed to Nairametrics that it is (HO Corn) not registered with the commission. That’s like a Ponzi scheme; so many people will tell you to put N1000 to get N2000. It’s a Ponzi scheme, they are trying to convince you that they are registered with an insurance company and you’ve seen their office.”
“So many companies are like that, you’ve seen their offices on the ground. Maybe after the first investment, you collect your return, after the second and third nothing for you. You won’t see them anymore.”
“Meanwhile, the spokesperson for SEC, Efe Ebelo, urged interested investors to, “Go to our website, you will see a list of fund managers there, anybody that is doing investment, if their name is not there, they are Ponzi (schemes). Anybody that is collecting money from people, their name must be on our website. If their name is not there, don’t give them your money.”
Subscriber(s) call out the company on social media
A Twitter user @RavishingBeau called out HO corn for delaying the payment of Return on Investment. According to her, payment was due on July 3rd, 2020 but she (and other subscribers) got an email on 16th June 2020 requesting an extension of the payment date from July 3rd to October 10th due to the coronavirus pandemic.
Again, just a few days to the extended date (10th October 2020) 7th October precisely, HO corn in an email to subscribers due for ROI asked for another payment extension for October 30th, 2020.
The reasons for the shift in payment date according to the startup are COVID-19, low patronage from off-takers occasioned by the paucity of funds, and largely unharvested corn farms.
On what it will do to boost finance, HO corn says “It has activated different platforms all in a bid to boost sales we are open for patronage and partnership with regards to the sale of fresh, boiled and dry corn. For further inquiries about our products, kindly pay us a visit at buycornng.”
October 30th eventually arrived, Ho corn did not pay which prompted @RavishingBeau to call out the startup on Twitter. This appeared to have worked as the CEO of the startup sent an email on the 31st that payment will now span from Oct 30th to December, 31st 2020.
To clarify the position of the insurance company, Anchor Insurance Company, on the 2nd of November 2020, HO corn sent a disclaimer mail the capital of subscribers is not insured. However, @RavishingBeau says ‘This is false. our investment agreement says otherwise.
On 4th November, some of the subscribers who mostly bought 1 unit were paid. This payment for most of the subscribers was not good enough as according to @RavishingBeau, many people who bought over 10 units worth millions of naira are awaiting payment.
Is HO corn a Ponzi Scheme?
From the position of SEC, the incessant extension of payments, and the unclear payment process, we can say that HO corn is a Ponzi Scheme. The only way the startup can redeem itself is to ensure that all subscribers are paid the ROI due to them.
Please note that Techawkng reached out to Harrison O. Andrew and HO corn via email for comment on this story. We did not get any response from them at the time of this publication.
Feature image credit: Nairametrics
