The general director of the Bag and Securities Commission (SEC), Dr. Emomotimi Agama warned the Nigerians to be careful with the companies that claim that the registration of their companies with the Corporate Affairs Commission (CAC) and the Scum Certificate of the Commission of Economic and Financial Crimes (EFCC) have empowered them to operate investment schemes in Nigeria.
Agama said this during an interview with journalists on Wednesday outside a awareness tour against the Ponzi scheme held in the Garki market in Abuja.
He said it was discouraging that some Nigerians and foreign companies have specialized in defrauding the Nigerians through Ponzi's schemes, and added that the government will no longer sit and see billions of naira removed from people through the Ponzi schemes.
The DG DG said it is crucial that Nigerians understand the dangers of putting their money earned so much in companies that are not regulated or regulated by the SEC.
Agama said: “It is discouraging that some Nigerians and foreign accompaniments have specialized in deceiving the Nigerians and the government does not feel and see the deceived Nigerians and this is what the sec is going out with people to educate them that if it is too good to be true, be careful.
“We have seen many Ponzi schemes in the past, and the President has signed the Law of Investments and Securities and the Law recommends a fine of N20M and 10 years in prison for the criminals of Ponzi.
“So, that has allowed us to be in a better position to eliminate all these fraudulent investment schemes that are damaging our economy
“We are using this awareness of awareness to provide information to our people and that is why we are here and telling them that we are here to help them confirm legitimate investment schemes and we are letting them know that we feel their pain.
“While we are doing this, we have helped to educate them to not be fooled. The CAC registration and the EFCC certificate is not enough to demonstrate that the company is registered with SEC and these are red flags.
“Training programs organized by these people to attract people to their schemes are also illegal. Verify before investing in any scheme, and that is our message for Nigerians.”
Also talking with journalists,
The deputy director of the Department of Confaction, SEC, Tope Onwionoko, said that the commission's management is very passionate about financial education, especially with respect to the Ponzi schemes that have become a scourge in society lately.
She said: “Then, we want everyone to know about it, from the oldest to the youngest, from the rich to the poor. We want the message to turn around the entire Nigeria. And as a beginning, management decided that it is good to come to the market, because we know that the place that the people who trade in the market are in the economy.
“Then, we believe that we must bring you this message, with the hope that they understand what to take into account, what are the red flags, and for the moment we have finished, the people who perpetuate Ponzi in Nigeria, will take their bags and leave, because they will no longer be commercial as usual.
“People who fall to victims are usually people who have no knowledge about how Ponzi schemes work. So, I think for most of them, it is the lack of knowledge, essentially.
“And, of course, we want to believe that economic difficulties have a role to play. But more than anything, it is a lack of knowledge. Because even if it is hard for cash in the economy, and there is an opportunity for you to lose how small you have, you will not go there.
“So I think it's because people don't know what to keep in mind. They don't know that someone is trying to collect what is in their hand. That's why they are victims.” Sample trimmed content.
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