Fake investment schemes’ proliferation worries SEC

The Securities and Exchange Commission, SEC, has expressed concern over what it describes as the “persistent proliferation of operators running illegal investment schemes” in the country.

The Director General of the SEC Mr. Lamido Yuguda in a statement in Abuja yesterday however assured the public of a renewed onslaught against promoters of such schemes.

Yuguda disclosed that last year alone, the Commission sealed off the offices of four such illegal operators that had defrauded innocent citizens of billions of naira and assured that the Commission would continue its enforcement actions to ensure that such illegal entities are not allowed to operate.

“The SEC has been fighting a serious war against Ponzi schemes, we have been alerting people. We have said that investors should only deal with registered operators that have the registration of the Commission, we have their list on the SEC website and we have always said that if you go to an operator or when an operator approaches you, you must confirm that he is a licensed operator with the SEC.

“We have our numbers on how to reach our offices in the zones and we have done a lot of sensitization in terms of seminars, webinars all in an effort to discourage people from going to Ponzi schemes. Unfortunately, a lot of people continue to patronize these Ponzi schemes, we have had cases that have been reported to us, and our enforcement department and the police unit has been on many of these cases trying to resolve the cases that have been reported to us.

“The Commission has also continued to employ its compliance tool to ensure that only fit and proper capital market operators practice in the market. This has resulted in an improved level of compliance with filing of prudential returns rising to 96 per cent in 2022 compared with 81 per cent in 2021”.

(Vanguard)