…Currently Investigating 79 Schemes
The Securities and Exchange Commission (SEC) has hinted of its plans to commence a full investigation into the activities of an entity operating under the name FF Tiffany, which has been widely reported for allegedly running a fraudulent investment scheme and defrauded thousands of Nigerians both locally and in the diaspora.
It stated that preliminary information suggested that the scheme, which promised investors unusually high and unrealistic returns, had resulted in the loss of several billions of Naira to its customers.
The SEC maintained that it considered the ugly situation as a serious threat to investor confidence and the overall integrity of the financial system.
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It assured the public that it was working closely with law enforcement agencies and other relevant bodies to bring everyone involved in this unlawful operation to justice by prosecuting them in accordance with Investment and Securities Act and regulatory provisions.
In light of this development, the SEC reiterated its earlier warnings to the general public to desist from engaging in Ponzi or unregistered investment schemes that promise guaranteed or exaggerated returns. These schemes are not registered with the SEC and do not offer investor protection under the law.
The commission disclosed that it was currently investigating 79 schemes and would make a statement on its findings at the conclusion of the investigation of the schemes
It charged investors to conduct due diligence and verify the registration status of any investment firm or product by visiting the SEC website or contacting the Commission directly through official channels, assuring of commitment to its mandate of protecting investors, by ensuring fair practices, and building confidence in Nigeria’s capital market.
The Commission had in a bid to prevent more Nigerians from falling victims to Ponzi schemes, conducted various sensitization campaigns, distributed informational flyers and engaged traders on the risks associated with investing in unregulated schemes.
Speaking to journalists after the event, the commission’s Director-General, Dr. Emomotimi Agama, who led the SEC team, explained that the initiative was part of the SEC’s ongoing efforts to protect Nigerians from fraudulent investment platforms.
He 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.
“We are happy that we have come out here to inform them and more importantly, they are now being enlightened to the effect that if it is too good to be true then it is not good, certainly it is not true. They encouraged us to come back again on this journey and we have also encouraged them to inform more people all around them about the dangers of Ponzi schemes. We believe strongly that by this action, a lot of people would be free from Ponzi scheme scams.
“We decided to do this sensitization to the market because we discovered that it is difficult for people to get the information that will protect them. Sitting in our offices and requiring them to go to our websites and getting to us through the telephone may not be the best way; we needed to come out to let them know the dangers of a Ponzi scheme.
“The danger is real. You could lose all your money. You could fall into ill health from the stress. When that happens, you risk destroying your family, your foundation, your business, even your nation”, the Director-General warned.
He expressed the determination of the Commission to stamp out Ponzi schemes and all other illegal investment platforms from Nigeria.
Agama expatiated: “President Bola Ahmed Tinubu has signed into law the new ISA 2025. Now, anyone involved in Ponzi schemes—whether influencers, bloggers, accomplices, or anyone else—faces a 20 million naira fine and up to 10 years in jail.
“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, even the navy. We want everyone to hear this message.
“It is never too late. When you wake up, that is your morning. Now that you are educated, you can protect yourselves and others. Ponzi schemes are a global problem, but together, we can fight them here.
“The SEC of today is reaching out like never before. We will continue to do this, but we need your help to spread the information. Together, we will be better off”, he assured.
