SEC building
In a major crackdown on illegal financial practices, the Securities and Exchange Commission (SEC) has secured convictions and prison sentences for seven companies and their directors involved in operating Ponzi schemes within a single month.
The Director-General of SEC, Dr. Emomotimi Agama, disclosed this during a broadcast appearance on Channels Television in Abuja.
According to Agama, the swift convictions were made possible through a tight-knit collaboration with the Economic and Financial Crimes Commission (EFCC), backed by powers granted under the Investments and Securities Act (ISA).
“So, it was important that we have a legal backing that could enable us to send them to jail,” Agama stated. “The Investments and Securities Act 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.”
Expressing concern over the continued prevalence of fraudulent investment offers in Nigeria, Agama described Ponzi schemes as promises that appear “too good to be true,” designed specifically by unscrupulous individuals to deceive unsuspecting investors.
To eliminate bureaucratic delays in prosecuting financial offenders, SEC has bolstered its enforcement mechanism by partnering directly with key law enforcement bodies, including the Police, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Ministry of Justice through the Office of the Attorney-General.
Notably, SEC now hosts an in-house unit of the Nigeria Police Force and representatives from the Ministry of Justice, allowing the commission to initiate arrests and prosecutions without leaving its premises.
“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,” Agama warned. “It will be my utmost pleasure to see more of these people in jail and we will make sure that happens.”
To prevent citizens from falling prey to illegal investment scams, Agama added that SEC is currently expanding its footprint across various states. The creation of new regional offices aims to give Nigerians direct access to accurate, adequate, and timely capital market information, helping them make informed financial decisions.
