The Securities and Exchange Commission has urged members of the public to report any fund manager that is operating without the registration of the Commission in order to checkmate Ponzi schemes and other fraudulent activities.
Chief Economist, SEC Dr. Okey Umeano, who stated this in a statement in Abuja, said the battle against illegal fund managers must be tackled on all fronts.
Umeano disclosed that the new Investments and Securities Bill has amended some of the provisions around Ponzi schemes, illegal fund managers, and certain unwholesome practices in the market to ensure that these practices no longer happen.
"Among other provisions, the bill prohibits the operation of Ponzi/pyramid schemes and other illegal investment schemes while prescribing a jail term of not less than 10 years for promoters of such schemes. This will strengthen regulation on Ponzi schemes. We are going to go all out against the promoters of such Ponzi schemes"
Dr. Umeano said he has gone through the marketing literature of some of these Ponzi scheme operators where they promise investors 10%, 20% in a month, which he stated is unreasonable urging investors not to patronize them.
