SEC warns Nigerians against Ponzi schemes – TheNigerialawyer

The Securities and Exchange Commission on Sunday warned
Nigerians to desist from investing their money in investment
schemes being operated by persons or organisations that were not
registered to carry out fund management functions.

The acting Director General of SEC, Ms Mary Uduk, gave the
warning in a statement made available to our correspondent in Abuja
on Sunday. She spoke in response to reports of various unregistered
schemes luring unsuspecting Nigerians with tempting returns.

Urging investors to be wary of any investment proposing a return
level that was unreasonably high, Uduk advised members of the
public to always ascertain whether such fund manager and the
products being offered were registered with the SEC.

Uduk said that the capital market was properly positioned to
provide benefits to Nigerians.

According to her, SEC has been doing a lot in terms of investor
education to assist people understand issues surrounding the
capital market.

She said, “This is for the all-important purpose of ensuring
that the gains of your participation, be these dividends, proceeds
from share sales/transfers, etc accrue to you seamlessly without
sweat and in the shortest time possible.

“The purpose is also to ensure that you do not fall victim to
the antics of fraudsters who purport to be able to double any
amount of money you make available to them as investment value.

“These fraudsters or promoters of Ponzi schemes are the false
prophets of the investment environment; they are the ill-wind that
blows no good and at whose sight you must flee. They are to be
avoided.

“This is one message you must keep spreading to family, friends,
relations and acquaintances in order to save them from the agony of
loss of their hard-earned money.

“Please note that anyone that subscribes to these illegal
activities does so at their own risk.”

Uduk added that the commission had undertaken various
initiatives to make the capital market more user-friendly so that
people can participate in it with greater ease, comfort and
convenience.

She further disclosed that the SEC was leading the entire
capital market industry in an effort to migrate all shareholders to
an e-dividend regime.

According to her, the essence of the e-dividend mandate
management system is to eradicate or reduce the incidence of
unclaimed dividends to the barest minimum.