Thursday30 January 2025
mozgy.in.ua

Why was financier Eric Naiman's project labeled a "scam"?

The stock market regulator has included Eric Naiman's Hug project in its list of fraudulent activities. What do the financier's posts on Facebook have to do with this?
Почему проект финансиста Эрика Наймана был назван "скамом"? Узнайте все подробности.

On January 9, the National Securities and Stock Market Commission (NSSMC) added the Hug's project by well-known financier Erik Nayman to its list of fraudulent schemes. With this decision, the regulator effectively urged Ukrainians not to trust the analyst with their investments.

Nayman is a public financier who frequently comments on investment events for local media and maintains a large blog on YouTube and Telegram. His project fell out of favor with the NSSMC shortly after Nayman found himself at the center of a scandal related to his posts on Facebook.

What does Nayman think about the commission's decision, and how will it affect his business?

What Happened

The site hugs.ua, which promotes Nayman's courses, has been recognized as a scam project and added to the relevant list on the NSSMC's website. The regulator records all companies and projects suspected of fraud and operating without licenses and permits.

The register of scam projects is regularly updated by the National Commission, as this is often the only action it can take to protect citizens from potential fraudulent schemes, the number of which has been steadily increasing since the onset of the large-scale war.

The Hug's website features Nayman's blog, where he analyzes Western stock markets. It also offers informational courses where Nayman teaches Ukrainians how to invest properly. The cost of the courses ranges from 250 UAH to 40,000 UAH.

The site also offers "individual client-investor support" services, within which the company provides a personal mentor to assist with investments. Clients of this service must already have an account in foreign securities, particularly with brokers like Interactive Brokers, Exante, Freedom Finance, etc.

Additionally, Nayman runs a blog on YouTube (62.6 thousand subscribers) and on Telegram (over 22 thousand subscribers).

In its justification, the National Commission noted that the Hug's website provides investment and consulting services without the necessary permits and licenses. Moreover, the site uses the branding of a company that is licensed to operate in the securities market - LLC "Hugs" (which can provide brokerage services).

The founder of the latter was indeed Erik Nayman; however, in 2022, he had to formally exit the ownership structure, as he still holds Russian citizenship.

"The aforementioned activity on the website https://hugs.ua may show signs of unlicensed activity, as in the 'Public Offer Agreement,' the service provider is indicated as LLC 'Spay,' which has not obtained any licenses required for professional activity in capital markets and organized markets in Ukraine," the NSSMC stated.

According to EП, one of the reasons for including Nayman's project in the list of fraudulent schemes was his posts on Facebook. "There were issues with his activities before, but after these posts, let's say, they attracted attention," said a source familiar with the situation.

"Investment Concentration Camp"

At the end of 2024, Nayman became embroiled in a major scandal. On the morning of December 20, after a Russian missile strike on downtown Kyiv, he published a post on Facebook that effectively advertised his overseas investment services, illustrating it with a photo of damaged buildings.

"A grim Kyiv morning. Take care of yourselves and diversify your assets. This is what real estate in the capital's center looks like today. I repeat: you are taking a significant risk if you keep all your assets in Ukraine," he wrote.

Subsequently, Nayman deleted this post; however, as is known, "screenshots do not disappear."

Скриншот сообщения Эрика Наймана после ракетного удара России по центру Киеве 20 декабря 2024 года

On the same day, Nayman wrote another post (as of January 9, this post has not been deleted), in which he referred to Ukraine as an "investment concentration camp."

"If you still do not understand that you live in an investment concentration camp, where all the tax rules, banking and currency regulations, actions of officials, and even marketing are aimed at ensuring that everything you earn is spent here, then it is time to realize this. You are simply being deceived," the financier wrote.

Еще одно сообщение Наймана, в котором он назвал Украину инвестиционным концлагерем

This sharp criticism is likely related to the NSSMC's decision to restrict one of the most popular schemes for capital outflow abroad. The day before Nayman wrote his posts, EП reported that the regulator plans to prohibit the withdrawal of funds abroad using American "treasuries."

Previously, the National Bank imposed strict restrictions on transfers between bank accounts, "encouraging" banks to voluntarily sign a corresponding memorandum.

What Does Nayman Say

EП reached out to Erik Nayman for a comment on the commission's decision. The financier noted that he received a letter from the regulator requesting answers to several questions and "clarification of the circumstances." His lawyers are already working on providing these answers.

"Spay" received the request yesterday (January 8 - EП), and it stated to respond within five days. It is interesting why the Commission made its decision before receiving the answers?" Nayman wonders.

He rejects the NSSMC's accusations that the hugs.ua website provides services without obtaining a license.

"These are informational courses. If informing people about what is happening is considered a scam, then I would ask the commission to clarify what motivated their decision. I also have a question about when the funds of thousands of 'Freedom Finance' depositors will be unfrozen."

Many people are currently vlogging and discussing the American stock market, for instance. Does such activity require a commission license?" Nayman pointed out.

EП also inquired whether Nayman considers the regulator's actions a "revenge" for the analyst's posts on social media.

"If they have questions about this, they should address them to me. What does LLC 'Spay' have to do with it? There are no signs, grounds, or justifications for such a decision, while a subject of authority should avoid making unmotivated decisions," Nayman added, emphasizing that he has no formal ties to this company.