SEC proposes 10 years jail for Ponzi promoters

Nigeria’s Securities and Exchange Commission (SEC) has proposed the prohibition of ponzi/pyramid schemes or ten years jail for anyone found promoting such. This is part of the SEC proposed bill currently before the national assembly.

Lamido Yuguda, SEC director-general, said the bill also aims at making SEC operations more competitive.

He said, “The bill introduces an express prohibition of Ponzi/pyramid schemes as well as other illegal investment schemes.

”The bill also prescribes a jail term of not less than 10 years for promoters of such schemes.

”It expands the definition of a Collective Investment Scheme to include schemes offered privately to qualified investors.

”Minor reviews on various sections of the extant law have been carried out to provide greater clarity,” he said.

“It is worthy to mention that the SEC has a detachment of the Nigerian Police working directly with the SEC on capital market matters including Ponzi schemes and we have a good collaboration with the Nigerian Financial Intelligence Unit, the EFCC, especially in the fight against money laundry and Ponzi schemes”.

“We are expanding to other organizations that have control over our airwaves and internet systems because you still see a lot of adverts of Ponzi schemes on these. We have very strong collaboration and engaging continuously with these agencies to eliminate completely, all Ponzi scheme operations in our market”