The Securities and Exchange Commission, SEC, says it secured convictions and prison sentences for seven companies and their directors over their involvement in Ponzi schemes within the space of one month.
SEC Director-General, Dr Emomotimi Agama, said the commission worked closely with the Economic and Financial Crimes Commission, EFCC, to prosecute the offenders and secure their convictions.
Agama described Ponzi schemes as investment offers that appeared too good to be true, expressing concern over their widespread presence in Nigeria. He said unscrupulous individuals used the schemes to defraud unsuspecting investors.
The director-general said the Investment and Securities Act, ISA, had strengthened the commission’s legal powers to prosecute offenders and secure convictions.
“So, it was important that we have a legal backing that could enable us to send them to jail. The ISA has empowered us.
“We have sent people to jail because we work very closely with the EFCC. Precisely a month ago, about seven companies with their directors were jailed, we got convictions, they were running Ponzi schemes,” he said.
Agama said the SEC also partnered with the Police and the Independent Corrupt Practices and Other Related Offences Commission to combat Ponzi schemes.
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He added that the commission now had units of the Nigeria Police Force and the Ministry of Justice, through the Office of the Attorney-General, operating within its premises.
According to him, the arrangement had removed the need to leave the commission’s premises to initiate arrests or prosecutions, making it easier to bring operators of Ponzi schemes to justice.
“So, if anyone is involved in any of these Ponzi schemes, it is easy, there is no bureaucracy, we will get hold of the person and send the person to jail.
“It will be my utmost pleasure to see more of these people in jail, and we will make sure that happens,” he said.
Agama added that the commission was establishing additional offices across states to ensure Nigerians had access to accurate and adequate information about the capital market.
NAN
