SEC warns against false prophets in investment market

The Acting Director General of Securities and Exchange Commission (SEC), Mary Uduk, has warned false prophets of Nigeria’s investment environment against unrealistic investment gains claims.

Uduak stated that Nigerians must be on guard as regards unregistered financial firms that swindle people with false claims. Her statement is in relation to several ponzi schemes that have made their way into Nigeria with claims of doubling people’s investment whithin a short period of time.

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Just some months back, the country was hit with Loom, a ponzi scheme that eventually made away with people’s investment without a trace. Loom isn’t the first ponzi scheme to pull this trick on Nigerians – the popular MMM had also defraud many people of their investments with same claim in 2017, a period Nigeria just exited recession.

There are still some silent ponzi schemes that are believed to be in operation, and in order to dissuade people from falling victims again, Udak warned that it’s important for Nigerians to conduct a research on such schemes and make enquiry to know if they are registered.

“This is for the all-important purpose of ensuring that the gains of your participation, be these dividends, proceeds from share sales/transfers, etc accrue to you seamlessly without sweat and in the shortest time possible.

“The purpose is also to ensure that you do not fall victim to the antics of fraudsters who purport to be able to double any amount of money you make available to them as investment value.

“These fraudsters or promoters of Ponzi schemes are the false prophets of the investment environment; they are the ill-wind that blows no good and at whose sight you must flee. They are to be avoided.

“This is one message you must keep spreading to family, friends, relations and acquaintances in order to save them from the agony of loss of their hard-earned money.” Uduak said.

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Not the first or last: Loom isn’t the first neither will it be the last, and Uduak has warned that victims are on their own. She stated that anyone that subscribes to these illegal activities does so at his or her own risk. This is not the first time such advise has been given.

The regulator warned Nigerians against all the ponzi scheme that existed before Loom and also warned Nigerians against participating in Loom, but some who went ahead to invest, eventually lost their money.