{"id":124122,"date":"2025-12-01T06:11:06","date_gmt":"2025-12-01T05:11:06","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=124122"},"modified":"2025-12-01T06:11:06","modified_gmt":"2025-12-01T05:11:06","slug":"sec-moves-to-track-prosecute-ponzi-scheme-operators","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/sec-moves-to-track-prosecute-ponzi-scheme-operators\/","title":{"rendered":"SEC moves to track, prosecute ponzi scheme operators"},"content":{"rendered":"
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By Daniel Adaji<\/div>\n
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The Securities and Exchange Commission (SEC) says it is scaling up efforts to identify and prosecute operators of Ponzi schemes across the country as part of a renewed push to protect investors and strengthen market integrity.<\/div>\n
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It disclosed this in a statement on Sunday.<\/div>\n
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The Commission announced the move at its Journalists\u2019 Academy 2025 in Lagos, where its Divisional Head of Legal and Enforcement, Mr. John Achile, stressed that the ISA 2025 gives the regulator stronger backing to go after illegal investment promoters.<\/div>\n
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Achile said the Commission would deepen its cooperation with other agencies to unmask those behind such schemes and curb the trading of fraudulent assets. He explained that SEC would continue to work closely with law enforcement bodies to ensure full criminal investigation and prosecution.<\/div>\n
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He stated that SEC would continue to ensure criminal investigation\/prosecution in collaboration with agencies such as the Nigeria Police Force, EFCC, and the Office of the Attorney General of the Federation, among others.<\/div>\n
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Speaking on \u201cCombating Investments Fraud, Ponzi Schemes and Illegal Investments,\u201d he noted that the Commission would also freeze accounts and seal offices linked to fraudulent operators. \u201cThe commission would continue to freeze the accounts and seal-up offices of the preparators,\u201d he said.<\/div>\n
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Achile highlighted signs that typically give away Ponzi schemes, noting that they depend on bringing in new investors to pay earlier ones.<\/div>\n
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\u201cIt requires the entrance of new investors to pay existing investors,\u201d he said, adding that investors are often issued \u201cfake documents or incomplete documents.\u201d<\/div>\n
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He listed other red flags, including unusually high returns with minimal risk, promises of consistent gains despite economic realities, lack of registration with regulators, and promoters who are unknown to oversight bodies.<\/div>\n
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He urged Nigerians to be wary of offers that seem too good to be true. He cautioned the public to conduct proper checks and avoid \u201cget-rich-quick\u201d investment platforms.<\/div>\n
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The SEC representative advised investors to always \u201cenquire from regulators of the sector of business touted before investing.\u201d<\/div>\n
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According to him, Ponzi schemes may appear as investments in agriculture, cryptocurrency, gold, or other lucrative-sounding ventures.<\/div>\n
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\u201cPonzi scheme could be structured as investment in agricultural business or processing along the value chain, investment in Bitcoin or cryptocurrency or other digital currencies and investment in gold coins or precious stones,\u201d he said.<\/div>\n
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He warned that such schemes erode public trust and destabilise the financial system. They often result in \u201closs of confidence in the regulator and the government when failurw occurs, reduces deposit in commercial banks, diversion of savings, huge scale of loses to investors and attendant socio-economic problems.\u201d<\/div>\n
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This year\u2019s academy is themed: \u201cThe ISA 2025 and The Future of Nigeria’s Capital Market: Innovation, Protection, and Growth.\u201d<\/div>\n
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