The Securities and Exchange Commission (SEC) has announced that it is currently investigating 79 suspected Ponzi schemes operating across Nigeria, amid growing concerns over investor losses and financial fraud.
In a statement issued on Tuesday, the regulatory body said the findings of the investigations will be made public upon conclusion, as it seeks to clamp down on illegal investment operations that have defrauded thousands of unsuspecting Nigerians.
Among those under probe is FF Tiffany, a controversial scheme widely reported for allegedly defrauding billions of naira from investors in Nigeria and the diaspora through unrealistic returns on investments.
“Preliminary investigations suggest that the scheme lured individuals with promises of high and guaranteed profits, which were clearly unsustainable,” the SEC said.
The Commission expressed grave concern over the impact of such fraudulent schemes on investor confidence and the overall integrity of the capital market.
“The SEC considers these activities a serious threat to the financial system and is collaborating with law enforcement and other relevant agencies to ensure all involved are brought to justice,” the statement read.
The regulatory body also reaffirmed its commitment to protecting the investing public, warning that anyone found guilty will be prosecuted under the Investment and Securities Act and other applicable regulations.
In a strong cautionary note, the SEC urged Nigerians to avoid Ponzi schemes and unregistered investment platforms, especially those that promise exaggerated returns with little to no risk.
“These schemes are not registered with the SEC and do not offer investor protection under Nigerian law. Investors are advised to conduct due diligence and only patronize licensed operators,” the statement emphasized.
