Hot Source* Threatens sanctions against perpetrators
Ndubuisi Francis in Abuja
The Securities and Exchange Commission (SEC) has revealed plans to commence full investigation into the activities of an entity operating under the name FF Tiffany, alleged to be operating an investment scheme reported to have defrauded thousands of Nigerians across the country and in the diaspora.
SEC said in a statement Tuesday that preliminary information suggested that the scheme, which promised investors unusually high and unrealistic returns resulted in the loss of several billions of naira by subscribers.
Noting that it considered this development as a serious threat to investor confidence and the overall integrity of the financial system, SEC assured the public that it was working closely with law enforcement agencies and other relevant bodies to bring everyone involved in this unlawful operation to justice.
According to the commission, those found culpable will be prosecuted in accordance with the Investment and Securities Act and regulatory provisions.
In the light of this, the SEC reiterated its earlier warnings to the general public to desist from engaging in Ponzi or unregistered investment schemes that promise guaranteed or exaggerated returns.
It added that these schemes are not registered with the SEC and do not offer investor protection under the law.
“The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of the investigation” the SEC stated.
It, therefore, encouraged investors to conduct due diligence and verify the registration status of any investment firm or product by visiting the SEC website or contacting the commission directly through official channels.
The commission assured Nigerians that it remains committed to its mandate of protecting investors, ensuring fair practices, and maintaining confidence in Nigeria’s capital market, adding that it had in a bid to prevent more Nigerians from falling victims to Ponzi schemes, conducted various sensitisation campaigns across the country.
The Director General, Dr. Emomotimi Agama, had led the SEC team that distributed informational flyers and engaged traders on the risks associated with investing in unregulated schemes.
