• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Markets Fixed Income

Report illegal fund manager operating without registration-SEC urges investors

Chris Ugwu by Chris Ugwu
April 27, 2023
in Fixed Income, Markets, Securities
SEC , Dividends

Director General of the SEC Mr. Lamido Yuguda

Share on FacebookShare on TwitterShare on Linkedin

Key Highlights 

  • SEC urged investors to be very cautious when these juicy returns are sold to them. The new Investments and Securities Bill has amended some of the provisions around Ponzi schemes, and illegal fund managers.
  • The bill prohibits the operation of Ponzi/pyramid schemes and other illegal investment schemes while prescribing a jail term of not less than 10 years for promoters of such schemes.

The Securities and Exchange Commission has urged members of the public to report any fund manager that is operating without the registration of the Commission.

Chief Economist, SEC Dr. Okey Umeano stated this in an interview in Abuja, saying the battle against illegal fund managers must be tackled on all fronts.

Investments and Securities Bill

Umeano disclosed that the new Investments and Securities Bill has amended some of the provisions around Ponzi schemes, illegal fund managers, and certain unwholesome practices in the market to ensure that these practices no longer happen.

RelatedStories

SEC warns Nigerians against investing in Risevest and Stecs  

SEC warns Nigerians against Value Growth Platform, flags it as potential Ponzi scheme 

June 27, 2025
SEC warns Nigerians against investing in Risevest and Stecs  

SEC warns against Zugacoin and Samzuga GPT, says they are not licensed in Nigeria 

June 18, 2025
  • “This ISB is supposed to accommodate these new operators, these new instruments, and new happenings in the market. The Act is now more up-to-date and in line with present happenings in Nigeria and at the global level. This Act also protects the investors more because we have made certain provisions in that Act that strengthens the SEC to ensure that they are better able to carry out their investor protection activities.  
  • “Among other provisions, the bill prohibits the operation of Ponzi/pyramid schemes and other illegal investment schemes while prescribing a jail term of not less than 10 years for promoters of such schemes. This will strengthen the regulation of Ponzi schemes. We are going to go all out against the promoters of such Ponzi schemes,” he said. 

How to find out illegal operators

Umeano said he has gone through the marketing literature of some of these Ponzi scheme operators where they promise investors 10%, 20% in a month, which he stated is unreasonable urging investors not to patronize them.

  • “When it is too good to be true and it sounds too good to be true, it is probably not true. There is a simple way to find out as the SEC website has a list of registered capital markets operators. Go to the SEC website and type in ‘CMO search’ and you will see a list of capital market operators that are registered and that are regulated. There is also another one that some of them started doing, the organization is registered but they now create a side product that is not registered. We register both the organization and the products and check properly before parting with your hard-earned money. 
  • “In the capital market, we do not allow capital market operators to promise fixed returns. Nobody knows what the market will give, and people will make some efforts but nobody can for sure tell you I will make 10% or 20% every month for you. When people tell you if you bring in money, I will pay you this amount but you have to bring in other people, you have to register other people, they are most likely to be using the money of those people to pay you, using your own to pay the person who brought you in, and that becomes the pyramid in Ponzi schemes work,” he said.

Umeano, therefore, urged investors to be very cautious when these juicy returns are sold to them, urging them to contact the SEC via its website or through the telephone as well as social media platforms to ascertain the registration status of such entities.

What you should know

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. A Ponzi scheme is a fraudulent investing scam that generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers.

Both Ponzi schemes and pyramid schemes eventually bottom out when the flood of new investors dries up and there isn’t enough money to go around.


Follow us for Breaking News and Market Intelligence.
Tags: Illegal fund managersSecurities and Exchange Commission
Chris Ugwu

Chris Ugwu

Chris is a Senior Financial Analyst at Nairametrics Advocates Limited with over a decade stint in active journalism and public relations practice.

Related Posts

SEC warns Nigerians against investing in Risevest and Stecs  
Legal & Regulations

SEC warns Nigerians against Value Growth Platform, flags it as potential Ponzi scheme 

June 27, 2025
SEC warns Nigerians against investing in Risevest and Stecs  
Legal & Regulations

SEC warns against Zugacoin and Samzuga GPT, says they are not licensed in Nigeria 

June 18, 2025
SEC warns Nigerians against investing in Risevest and Stecs  
Cryptos

SEC to launch ‘Crypto Smart, Nigeria Strong’ initiative for stablecoin regulation 

June 16, 2025
SEC warns Nigerians against investing in Risevest and Stecs  
Legal & Regulations

SEC directs companies to pay dividends older than 12 years, clarifies Finance Act 2020 provisions 

June 10, 2025
SEC warns Nigerians against investing in Risevest and Stecs  
Legal & Regulations

SEC warns Nigerians against investing in meme coin ‘$PUN’ 

June 7, 2025
Why young Nigerians must consider investing in local and foreign stock markets
Dividends

Fastest way to reclaim lost dividends in Nigeria

June 1, 2025
Next Post
Flutterwave honored with Excellence in Fintech Infrastructure Award for 2023

Flutterwave honored with Excellence in Fintech Infrastructure Award for 2023

Comments 1

  1. tolu says:
    April 27, 2023 at 11:59 pm

    just like agropartnership scammed us

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Superman opens with N133.7 million ticket sales at Nigerian box office
  • WHO, UNICEF warn of rising immunization gaps as nearly 20 million infants missed vaccination in 2024 
  • CAC flags three cooperative societies for using fake incorporation certificates in Nigeria 

Follow us on social media:

Recent News

Superman opens with N133.7 million ticket sales at Nigerian box office

Superman opens with N133.7 million ticket sales at Nigerian box office

July 15, 2025
polio immunization

WHO, UNICEF warn of rising immunization gaps as nearly 20 million infants missed vaccination in 2024 

July 15, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics