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The Securities and Alternate Fee (SEC) has launched an investigation into 79 suspected Ponzi schemes throughout Nigeria, warning that these discovered culpable will face extreme authorized penalties, together with prosecution underneath the Funding and Securities Act (ISA).
The Fee stated it’s going to announce the outcomes of its investigations into the 79 suspected schemes, together with FF Tiffany, when the probes are concluded.
In an announcement issued on Tuesday in Abuja, the Fee disclosed that it is usually opening a separate, full-scale probe into the actions of an entity generally known as FF Tiffany. The corporate has been broadly accused of orchestrating a fraudulent funding scheme that has allegedly swindled hundreds of Nigerians at house and within the diaspora.
“Preliminary findings recommend the scheme promised unusually excessive and unrealistic returns, resulting in losses operating into a number of billions of naira” the Fee stated. The SEC described this as a grave menace to investor confidence and the steadiness of the monetary system.
The Fee assured Nigerians that it’s working carefully with regulation enforcement and different related businesses to hint these behind the scheme, stressing that people and entities discovered responsible will probably be prosecuted in keeping with the regulation.
In response to the rising variety of unregulated funding platforms, the SEC repeated its advisory to the general public to avoid Ponzi schemes and different ventures that promise assured or exaggerated returns. The Fee warned that these schemes are usually not registered and due to this fact supply no investor safety underneath Nigerian regulation.
To guard potential buyers, the Fee urged Nigerians to confirm the registration standing of any funding agency or product by checking the SEC web site or contacting its workplaces immediately.
“The SEC stays dedicated to defending buyers, guaranteeing honest practices, and preserving confidence in Nigeria’s capital market,” the assertion learn.
As a part of ongoing efforts to curb the unfold of fraudulent schemes, the SEC has just lately carried out consciousness campaigns throughout markets nationwide. These sensitisation workouts, led by SEC Director Normal Dr. Emomotimi Agama, aimed to coach merchants and the broader public on the risks of placing cash into unregistered and dangerous funding platforms.
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Talking to journalists throughout one in every of these campaigns, Agama defined that the Fee determined to take the message on to the streets and markets, reasonably than relying solely on on-line platforms or official channels.
“It’s essential that Nigerians perceive the risks of placing their hard-earned cash into ventures that aren’t registered or regulated by the SEC,” Agama stated. “We’ve come out right here to tell them, and extra importantly, they’re now being enlightened that whether it is too good to be true, then it isn’t good—it’s actually not true.”
Agama famous that lots of these engaged through the campaigns inspired the SEC to return commonly, and he known as on them to share the data with associates, household, and colleagues. In keeping with him, elevating consciousness on the grassroots stage may also help defend tens of millions from falling sufferer to Ponzi schemes.
Explaining the true dangers, Agama stated, “The hazard is actual. You possibly can lose all of your cash. You possibly can fall into in poor health well being from the stress, and that might destroy your loved ones, your basis, your corporation—even the nation.”
The SEC boss identified that with the signing of the brand new ISA 2025 by President Bola Ahmed Tinubu, penalties for selling or taking part in Ponzi schemes have turn out to be extra extreme. These concerned—together with influencers, bloggers, and different accomplices—now threat a nice of N20 million and as much as 10 years in jail.
“We won’t cease right here. We’ll go to each market we will attain—each nook and cranny of this nation. We’ll go to church buildings, mosques, hospitals, and even the navy. We wish everybody to listen to this message,” Agama said.
He added, “It’s by no means too late. While you get up, that’s your morning. Now that you’re educated, you possibly can defend yourselves and others. Ponzi schemes are a world drawback, however collectively, we will combat them right here.”
Stressing the SEC’s dedication to stamp out Ponzi operations and defend buyers, Agama appealed for collective motion: “The SEC of in the present day is reaching out like by no means earlier than. We’ll proceed to do that, however we’d like your assist to unfold the knowledge. Collectively, we will probably be higher off.”
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