The Economic and Financial Crimes Commission, EFCC, Kaduna Zonal Directorate, have disclosed the arrest of 28 alleged ponzi scheme operators in Minna, Niger State.
According to the EFCC statement on Monday, the suspects who were nabbed by its operatives, will be arraigned for fraud.
The suspects were identified as: Nofisat Opeyemi, Shukurat Muritala, Odunayo Sanni, Mayowa Oyekola, Aishat Olaitan, Edward Hannah, Abioye Fathiah, Joseph Omowunmi, Kareem Ahmed, Arikeusola Afeez, Adiamo Mutholib, Abass Ibrahim, Wasiu Taofeek, Adeniji Damilare, Nurudeen Akinola and Mubarak Yekeen.
Others are: Adedeji Ayobami, Alani Samuel, Ogundele Yunus, Adekunle Ibrahim, Adewale Azeez, Rufai Faruk, Fawaz Yekeen, Olade Abdullahi, Ahmed Murtala, Adisa Habeebllahi Akorede, Adigun Timilehin and Abdulfatai Ridwannullah.
EFCC Allegations
According to the EFCC, the suspects’ arrest followed credible intelligence that linked them to fraudulent investment activities with a company, Q-Net Ltd.
- The company was said to be operating from a three bedroom apartment in Al-Bishiri Estate, Minna, Niger State.
- The suspects were accused of luring people to invest about N1,400,000 for product purchases from Dubai and a few foreign countries.
“The Victims were lured to believe that the company was international with affiliates in Dubai, India, Indonesia, and Thailand, and made to part with between $790 to $850, amounting to N1,462,000 (One Million, Four Hundred and Sixty-two Thousand) as registration fee and for product purchases. Part of those arrested while receiving lectures on ponzi scheme operations, dressed up as network marketing,” the EFCC added.
- Items said to be recovered from the defendants’ include Q-Net application forms and other documents.
- The EFCC stressed that the defendants would be charged to court as soon as investigations are concluded.
More insights
The legal scrutiny against Ponzi schemes took a new dimension following the passage of the Investments and Securities Repeal and Re-enactment Bill, 2024, by the Senate early December 2024.
- The bill, aimed among other things, to clamp down heavily on operators of Ponzi schemes and other illicit activities in the country.
- The bill proposed by the Nigerian SEC under Mr. Emomotimi Agama proposed a 10-year jail term for convicted Ponzi scheme operators and about $12,000 (20 million) in fines.
- The Nigerian SEC previously presented this bill before the former president of Nigeria, Muhammadu Buhari, and stated that the purpose of the bill was to make the Nigerian securities market competitive.
Stakeholders and active members hailed this bill saying that the bill will help mitigate the menace of bad actors who swindle the general public.
The bill was passed at the plenary session following the adoption of the report from the Committee on Capital Markets, chaired by Senator Osita Izunaso (APC-Imo).
It was sponsored by Senator Bamidele Opeyemi and co-sponsored by Izunaso.
