Operatives of the Economic and Financial Crimes Commission, EFCC, on Monday, arrested 133 suspects, after busting a Ponzi Scheme Academy in Abuja, hinting at their arraignment.
This was disclosed in a statement on March 24.
According to the Commission, the suspects were arrested at the Compensation Layout in the Gwagwalada area of the Federal Capital Territory, FCT, Abuja, following actionable intelligence on the existence of the Academy.
EFCC Investigation
The Academy, where the arrest took place is named Q University (a.k.a Q-Net).
The EFCC says it “is in the business of recruiting gullible young Nigerians who are trained to recruit more gullible citizens into the scheme with the promise of getting unrealistic profit returns.”
“The suspects are enrolled in a training codenamed: “Special Training for New Generation Billionaire” and brainwashed to believe that they would graduate into the league of billionaires.
“They got into the training by obtaining a form the promoters called “Independent Representative Application Form” with promotional slogans such as: “I’m a Champion” “I’m Unstoppable”, “I’m Infinity”, among others,” the statement partly reads.
The EFCC disclosed that it carried out the operation in collaboration with officers and men of the 176 Guards Battalion, Nigerian Army.
“Items recovered from the suspects include phones, computers and other electronic gadgets,” it added.
The Commission assured that the suspects will be charged to court as soon as investigations are concluded.
More Insights
The development is happening about two weeks after the EFCC disclosed the arrest of 28 alleged Ponzi scheme operators in Minna, Niger State.
According to the EFCC, the suspects’ arrest followed credible intelligence that linked them to fraudulent investment activities with a company, Q-Net Ltd.
- 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 in 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.
