Director-General, SEC, Dr. Emomotimi Agama
The Securities and Exchange Commission has warned citizens against companies that claim their registration with the Corporate Affairs Commission (CAC) and the Economic and Financial Crimes Commission (EFCC) empowers them to operate investment schemes.
The Director-General of SEC, Dr Emomotimi Agama, said this on Wednesday at a campaign against Ponzi scheme in Garki Market, Abuja.
Agama regretted that some Nigerian and foreign companies specialised in defrauding citizens through Ponzi schemes.
He said the government would no longer sit back and watch citizens being defrauded of their hard earned monies.
Agama said it was important that Nigerians understood the dangers of putting their money into ventures that were not registered or regulated by the SEC.
”It is disheartening that some Nigerians and foreign accompanies have specialised in duping Nigerians and government will not sit and watch them.
”This is why SEC is coming out to the people to educate them that if it is too good to be true, then watch out.
“We have seen many Ponzi schemes in the past, and the Investments and Securities Act have been signed into law by the President and the law recommends N20 million fine and 10 years imprisonment for offenders of Ponzi scheme.
“So, that has empowered us to be in a better position to flush out all these fraudulent investment schemes that are damaging our economy.
”CAC registration and EFCC certificate is not enough to show that the company is registered with SEC and these are red flags,” he said.
Agama said the sensitisation was to inform the people and assist them to confirm legitimate investment schemes.
He said that training programmes being organised by the fraudulent schemes to lure people were also illegal.
“As we are doing this, we have helped to educate them against being duped. CAC registration and EFCC certificate is not enough to show that the company is registered with SEC and these are red flags.
“Training programmes being organised by these people to lure people into their schemes are also illegal. Verify before you invest in any scheme, and that is our message to Nigerians.”
The Assistant Director, Enforcement Department, SEC, Tope Onwionoko, said the management of the Commission was passionate about financial literacy, especially with respect to Ponzi schemes that had become a scourge in the society.
”We want everybody to know about it, We want the message to go round the entire country.
”And as a start off point, we decided that it is a good thing to come to the market, because we know the place the people who trade in the market hold in the economy,” she said.
The commission would take the campaign against Ponzi schemes to churches, mosques, hospitals, barracks, among others.
