The Securities and Change Fee has reiterated its resolve to deepen interagency collaboration with the intention to establish, examine, and prosecute promoters of Ponzi schemes in step with the Investments and Securities Act 2025.
In an announcement issued on Sunday by the Fee’s Divisional Head, Authorized and Enforcement, John Achile, on the SEC Journalists’ Academy 2025 in Lagos, he outlined the Fee’s ongoing efforts to fight fraudulent funding operations.
Achile acknowledged that the Fee would proceed to strengthen partnerships with related authorities our bodies to trace these behind unlawful funding actions.
Based on him, SEC is poised to accentuate legal investigations and prosecutions in collaboration with safety and regulatory companies such because the Nigeria Police Power, the {Economic} and {Financial} Crimes Fee, and the Workplace of the Legal professional-Normal of the Federation.
Talking on the theme “Combating Funding Fraud, Ponzi Schemes and Unlawful Investments,” Achile disclosed that the Fee would additionally proceed to freeze {bank} accounts and seal the workplaces of perpetrators to halt the unfold of fraudulent schemes.
He acknowledged that Ponzi schemes typically depend on new traders’ funds to compensate present ones, mentioning that perpetrators incessantly present false or partial data to unaware victims.
He additional recognized different crimson flags related to such schemes, together with unusually excessive returns with little or no threat, assured constructive earnings no matter {economic} circumstances, failure to register with regulatory organisations, and promoters unfamiliar to regulators.
Achile urged Nigerians to train warning and do thorough due diligence earlier than contributing funds to any funding alternative.
He cautioned the general public to be cautious of “get-rich-quick” guarantees and suggested traders to confirm the legitimacy of any enterprise with the suitable regulator earlier than investing.