“Profits Will be Recovered”: SEC to Prosecute Ponzi Scheme Operators, Others Under New Act
- The Securities and Exchange Commission (SEC) has announced its readiness to go all out against Ponzi scheme operators
- The SEC DG noted that the newly signed ISA (2025) has given the commission legal authority to prosecute illegal scheme operators
- The Act also recommends stiff penalties, including a 10-year jail term for offenders, replacing the former act that had no penalties attached
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
President Bola Ahmed Tinubu, on March 29, finally assented to the Investments and Securities Act (ISA) 2025.
By signing the Investment and Securities bill (2025) into law, the Investment and Securities Act No. 29 of 2007 is hereby repealed and replaced by the Investments and Securities Act 2025.
The new ISA recommends stiffer penalties for operators of illegal investment schemes and Ponzi operators, and the Securities and Exchange Commission (SEC) has stated that it will ensure full enforcement.
Source: UGC
Under the new ISA (2025), operators of illegal and fraudulent investment schemes, including ponzi scheme operators, could face up to 10 years imprisonment, a minimum of N20 million fine, or both.
This strengthens the legal framework for operations in the Nigerian capital market and enables the SEC to better carry out its cardinal responsibilities of protecting investors in Nigeria.
Explaining the provisions of the ISA (2025), the SEC Director General, Emomotimi Agama, stated that it empowers the SEC with legal authority to prosecute, something that the ISA 2007 did not.
Agama added that this new Act would promote market integrity and transparency, and discourage illegal schemes.
The law also authorises the Securities and Exchange Commission (SEC) to register and regulate online forex trading platforms, crypto exchanges, among others.
The News Agency of Nigeria (NAN) reports that there are also other penalties to be meted out to offenders, in addition to the jail term and the monetary fines.
Agama said;
“Any profits or gains obtained from defrauding Nigerians will be recovered because it is not about the quantum of the fraud, it is about sanctions that will deter people from even getting into it. We recognise that a lot of Nigerians have fallen prey to these schemes, and the reason why that is the case is that there were no sanctions.”
Agama commended the president for signing the bill into law, as it will bring Nigeria’s market operations to align with best practices and global standards.
SEC warns Nigerians about Davido meme coin
Recall that the SEC warned the public against trading the recently minted digital meme coin $DAVIDO.
Source: Getty Images
The commission warned that the coin lacked fundamental values and was a high-risk investment for those who invested their funds.
The commission also recently warned Nigerians against investing in unregistered investment programs, especially the Promiseland Estates Limited and Promiseland Building & Construction Limited, and the UYJ Multitrade Limited, popularly known as My Share.
SEC declares war on Ponzi scheme operators
In related news, the SEC has declared its intention to hunt down Ponzi scheme operators, fraudsters, and rule violators operating in the capital market.
The SEC DG said that 2025 will feature more license revocations and suspensions of non-compliant operators, backed by the new ISA 2025.
He also urged market operators to adhere to the regulator's compliance and information disclosure requirements.
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Source: Legit.ng
