“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 keep spreading to family, friends, relations and acquaintances in order to save them from the agony of loss of their hard–earned money”
These were the words of Mary Uduk, acting director general of the Securities and Esxchange Commisison (SEC) weekend in the face of various unregistered schemes luring unsuspecting Nigerians with unreasonable returns.
Ponzi Schemes are popularly knows as a form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.
She thus advised Nigerians to desist from investing their money in various investment schemes that are not registered to carry out fund management functions.
Uduk while enjoining investors to be wary of any investment that is proposing return levels that are unreasonably high, also advised investors to always cross check that such fund managers and the products they are offering are registered with the SEC.
According to her, the capital market is properly positioned to attract Nigerians and provide benefits to Nigerians who invest therein.
She said the SEC has been doing a lot in terms of investor education to assist people understand whatever issues they have around the capital market.
“But besides that, there are new products coming up every day in the Nigerian capital market. We have a lot of ethical funds, one of the safest areas to invest in is in Mutual Funds, Collective Investments Schemes and we encourage Nigerians to be part of these and others”.
The Ag. DG said the SEC is presently undertaking various initiatives to make the capital market more user-friendly such that people can participate in it with greater ease, comfort and convenience.
She said “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.
Uduk therefore advised the general public to distance themselves from such schemes, adding, “Please note that anyone that subscribes to these illegal activities does so at their own risk.”