The Securities and Exchange Commission (SEC) announced that it is working with the National Orientation Agency (NOA) and other government agencies to combat the operations of illegal operators.
Mr. Lamido Yuguda, Director General of the Securities and Exchange Commission, revealed this in a goodwill message at the opening ceremony of the NOA’s National Fact-Checking Course in Abuja.
Yuguda, who was represented by the SEC’s Executive Commissioner Corporate Services, Mr. Ibrahim Boyi, stated that Nigeria’s investment climate has continued to witness the proliferation of illegal Fund Managers, also known as Ponzi schemes, as their promoters continue to defraud millions of citizens by promising them unbelievable returns on investments.
What SEC is saying about the crackdown on Ponzi schemes
SEC stated that the Ponzi schemes have undermined the reputation of the capital market and dampened investors’ confidence.
He said, “Such schemes with all the illegality and promises of unrealistic returns have burnt the fortunes of many ambitious investors, 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 has 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”.
While the SEC, in concert with other financial regulators, works to crack down on merchants of fake news and Ponzi Schemes, Yuguda believes that investors also have a significant 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 firstname.lastname@example.org; or from other regulatory authorities. Investments enable growth in wealth, thus while encouraging more retail investments, we urge you to invest in investment classes and products approved by the SEC, which can be confirmed through the channels provided above,” he stated.
The training, according to the SEC DG, is a timely program that will help combat the problem of fake news, misinformation, and disinformation. Disinformation, deception, and fake news, he claims, are frequently used to incite hatred, rage, and acrimony. As a result, there is dissatisfaction, discord, violence, and even war.
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