Avoid ponzi schemes, SEC warns Nigerians

Nigerians have again been warned to desist from investing their money in investments that offer unreasonable levels of returns at little risk to investors.

Mary Uduk, acting DG Securities and Exchange Commission (SEC), gave the warning Wednesday during a town hall meeting on current initiatives by the SEC Nigeria to enhance investor value held in Port Harcourt, Rivers State.

Uduk while urging investors to be wary of any investment that is proposing return levels that are unreasonably high, also added that they should always crosscheck such fund managers and the products they are offering are registered with the SEC.

The Ag. DG told the audience that the specific objective of the meeting is to keep Nigerians abreast of the initiatives that SEC is currently undertaking in order to make the capital market more user-friendly such that people can participate in it with greater ease, comfort and convenience.

“There is the added and 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 take home to family, friends, relations and acquaintances in order to save them from the agony of loss of their hard–earned money” she stated.

Uduk also used the occasion to inform investors that SEC is currently leading the entire capital market industry in an effort to migrate all shareholders to an e –Dividend regime.