• The Security and Exchange Commission (SEC) has proposed a prison term and a fine of N20 million for the operators of the Ponzi scheme.
• The committee proposed this in the Investment and Securities Bill (ISB) 2024, currently before the National Assembly.
• This development comes amid the expected return of a popular Ponzi scheme, Chinmark, to Nigeria.

Legit.ng’s Pascal Oparada reported on technology, energy, stocks, investing and economy for over a decade.

The Securities and Exchange Commission (SEC) has proposed a N20 million fine and prison terms for Ponzi scheme operators to protect Nigerians from illegal fund managers.

Before the National Assembly, the committee proposed this in the proposed Investment and Securities Bill (ISB) 2024. The bill also seeks to ban Ponzi/pyramid schemes and other illegal schemes.

Bill proposes tough penalties for Ponzi operators

The latest NASS passed the ISB, which includes provisions for possible prison sentences for operators in the country.

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However, the bill was not signed by former President Muhammadu Buhari before he left office.

In the new bill, the SEC proposed that operators and promoters of any entity engaged in a prohibited scheme shall commit an offense and be liable on conviction to a fine of not less than N20 million or a prison term of 10 years or both.

The Director General of the SEC, Emomotimo Agama, revealed that the commission had identified areas requiring review to strengthen existing provisions, remove ambiguities and introduce new provisions enabling the international competitiveness of the Nigerian capital market.

Agama emphasized that world-class markets are essential to the functioning of the modern economy as they constitute one of the can achieve significant progress through capital markets providing medium and long term financing.

Chinmark wants a return, cry Nigerians

This development comes amid the expected return of a popular Ponzi scheme, Chinmark, in Nigeria.

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Chinmark published on his Facebook page on November 13, 2024, it plans to return the offering to investors for purposes.

The company went bankrupt in 2022 when investors stopped receiving returns on their investment.

45,000 investors demonstrate

The Punch reports that around 45,000 people were harmed investors went wild to the Group Chairman, Marksman Ijiomah, and the company’s social media influencer and brand ambassador, Amanda Chisom.

Reports indicate that investors have exposed the trio of Ijioma, Chisom and Harrison Gwamnishu, a social media promoter, for luring them into what many see as another Ponzi scheme.

Early on Monday, March 21, 2022, investors alleged that a leaked bank document showed that the company did not have up to N1 million in its account as most had invested more than that amount.

SEC warns Nigeria against FinAfrica Investment and Poyoyo Investment

Legit.ng earlier reported that Nigeria’s Securities and Exchange Commission (SEC) warned the public on the operations of FinAfrica Investment Limited, based in Enugu, and Poyoyo Investment, based in Lagos. The SEC said the companies are Ponzi schemes because they lack viable business models.

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APC Group Reacts as NNPC, Marketers Plan to Distribute Dangote Fuel Across Nigeria

The Stock Exchange said the operations of these companies are illegal because the Commission does not recognize them.

In its management circular, published on its website on Tuesday, December 27, 2021, the SEC indicated that it does not authorize operating styles of companies.

Source: Legit.ng