EFCC, CAC don’t confer legitimacy on investment schemes – SEC DG

The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama on Wednesday told Nigerians that the Corporate Affairs Commission registration and SCUML certificate from the Economic and Financial Crimes Commission are not enough to show that an investment firm has been registered in Nigeria. The SEC DG said it is crucial that Nigerians […]

The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama on Wednesday told Nigerians that the Corporate Affairs Commission registration and SCUML certificate from the Economic and Financial Crimes Commission are not enough to show that an investment firm has been registered in Nigeria.

The SEC DG 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.

He said this during an interview with journalists on Wednesday at the sidelines of a sensitisation tour against the ponzi scheme held at the Garki Market in Abuja.

Agama said, “It is disheartening that some Nigerians and foreign accompanies have specialised in duping Nigerians and the government won’t sit and watch Nigerians being duped and this is what SEC is coming out to the people to educate them that if it too good to be true, then watch out.

“We have seen many ponzi schemes in the past and the Investments and Securities Act has been signed into law by the president and the law recommends a N20m fine and 10 years imprisonment for offenders of ponzi scheme.

“So, that has empowered us to be in a better position to flush out all these fraudulent investment schemes that are damaging our economy

“We are using this sensitisation outreach to bring information to our people and that is why we are here and telling them that we are here to assist them to confirm legitimate investment schemes and we are letting them know we feel their pain.

“As we are doing this, we have helped to educate them against being duped. CAC registration and EFCC certificate is not enough to show that the company is registered with SEC and these are red flags.

“Training programmes being organised by these people to lure people into their schemes are also illegal.  Verify before you invest in any scheme and that is our message to Nigerians.”

The Assistant Director,  Enforcement Department, SEC, Tope Onwionoko, said the management of the commission is very passionate about financial literacy, especially with respect to ponzi schemes that has become a scourge in the society of late.