SEC engages NOA to curb ponzi schemes, clamp down on operators

The Securities and Exchange Commission (SEC) says it is engaging with the National Orientation Agency (NOA) as well as regulators of public agencies to curb activities of ponzi scheme operators.

A statement by the management of SEC, said the Director General of the Commission, Mr Lamido Yuguda, disclosed  this at a Course organised by NOA in Abuja on Tuesday.

Yuguda said the country’s investment climate had continued to witness the proliferation of illegal fund managers, popularly known as ponzi schemes.

He regretted that the promoters of schemes were defrauding many citizens, by promising them mind-boggling returns on investment.

Yuguda said that SEC, in collaboration with other regulators in the financial sector, were also striving to clamp down on merchants of fake news and ponzi schemes.

“Such Schemes with all the illegality and promises of unrealistic returns have burnt the fortunes of many ambitious investors.

“Ranging from Yuan Dong Ponzi to Galaxy Transport, Famzhi Interbiz Limited, Cowlane and Durell, and the infamous Mavrodi Mundial Movement (MMM).

“The upsurge of these schemes have undermined the reputation of the capital market and dampened investors’ confidence, among other things.

“This has created a considerable challenge to the growth of our market, and the Commission is striving to change the narrative by instilling a fair, transparent, and orderly market,” he said.

Yuguda noted that investors also had a huge role to play.

“Investors are advised to always confirm if the investment product, scheme, or company is registered with the SEC before investing.

“This could be done through our website: www.sec.gov.ng or via email to [email protected]; or from other regulatory authorities.”