SEC Launches Investigation into 79 Suspected Ponzi Schemes

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The Securities and Exchange Commission (SEC) has launched an investigation into 79 suspected Ponzi schemes across Nigeria, warning that those found culpable will face severe legal consequences, including prosecution under the Investment and Securities Act (ISA). The Commission is also conducting a full-scale probe into the activities of FF Tiffany, a company accused of orchestrating a fraudulent investment scheme that has allegedly swindled thousands of Nigerians.

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The SEC stated that preliminary findings suggest the scheme promised unusually high and unrealistic returns, leading to losses running into several billions of naira. “Preliminary findings suggest the scheme promised unusually high and unrealistic returns, leading to losses running into several billions of naira,” the Commission said. The SEC described this as a grave threat to investor confidence and the stability of the financial system.

The Commission assured Nigerians that it is working closely with law enforcement and other relevant agencies to trace those behind the scheme. “The SEC remains committed to protecting investors, ensuring fair practices, and preserving confidence in Nigeria’s capital market,” the statement read. The SEC urged Nigerians to verify the registration status of any investment firm or product by checking the SEC website or contacting its offices directly.

As part of ongoing efforts to curb the spread of fraudulent schemes, the SEC has recently carried out awareness campaigns across markets nationwide. SEC Director General Dr. Emomotimi Agama said, “It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC.” Agama added, “If it is too good to be true, then it is not good—it is certainly not true.”

The SEC boss pointed out that with the signing of the new ISA 2025, penalties for promoting or participating in Ponzi schemes have become more severe. Those involved risk a fine of N20 million and up to 10 years in prison. “We will not stop here. We will go to every market we can reach—every nook and cranny of this country. We will visit churches, mosques, hospitals, and even the navy. We want everyone to hear this message,” Agama stated.

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