The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, says that the commission secured convictions and jail terms for seven companies and their directors involved in Ponzi schemes within one month.
Dr. Agama told Channels Television in Abuja in an interview that the commission worked closely with the Economic and Financial Crimes Commission (EFCC) to secure the convictions.
He described Ponzi schemes as offers that appeared too good to be true and expressed concern over their prevalence in Nigeria.
According to him, unscrupulous Nigerians perpetrate such schemes to defraud unsuspecting investors.
Agama said that the Investment and Securities Act (ISA) had empowered the commission to prosecute offenders and secure convictions.
“So, it was important that we have a legal backing that could enable us to send them to jail.
“The Investment 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,” he said.
The Director-General said that SEC also collaborated with the Police and the Independent Corrupt Practices and Other Related Offences Commission to tackle Ponzi schemes.
He said that the commission now hosted a unit of the Nigeria Police Force and the Ministry of Justice, through the Office of the Attorney-General of Nigeria.
He said that the arrangement had eliminated the need to go outside the commission’s premises to initiate arrests or prosecutions.
Agama said that the process of bringing Ponzi scheme operators to justice had become easier.
“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.
“It will be my utmost pleasure to see more of these people in jail and we will make sure that happens,” he said.
Agama said that the commission was establishing more offices across states to provide Nigerians with accurate and adequate capital market information.
GIK/APA