Famous Ponzi Scheme Stages Return as SEC Plans N20 Million Fine For Operators
- The Security and Exchange Commission (SEC) has proposed a jail term and N20 million fine for Ponzi scheme operators
- The commission proposed this in the Investment and Securities Bill (ISB) 2024, which is currently before the National Assembly
- The development comes amid the planned return of a popular Ponzi scheme, Chinmark, in Nigeria
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Securities and Exchange Commission (SEC) has proposed an N20 million fine and jail terms for Ponzi scheme operators to protect Nigerians from illegal fund managers.
Before the national assembly, the commission proposed this in the Investment and Securities Bill (ISB) 2024. The Bill also seeks to prohibit Ponzi/pyramid schemes and other illegal programmes.
Source: UGC
The Bill proposes stiff penalties for Ponzi operators
The last NASS passed the ISB, which includes provisions for possible jail terms for operators in the country.
However, the Bill was not signed by ex-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 commit an offence and are liable on conviction to a penalty of not less than N20 million or imprisonment to a term of 10 years or both.
The Director General of the SEC, Emomotimo Agama, disclosed that the commission saw areas requiring review to strengthen existing provisions, remove ambiguities, and introduce new provisions that enable the international competitiveness of the Nigerian capital market.
Agama noted that world-class markets are essential to the functioning of the modern economy as only one can achieve meaningful advancement with capital markets supplying medium- to long-term finance.
Chinmark seeks a return, Nigerians cry out
The development comes amid the planned return of a popular Ponzi scheme, Chinmark, in Nigeria.
Chinmark posted on its Facebook page on November 13, 2024, that it plans to return the offer to investors purpose.
The company went bust in 2022 when investors stopped receiving investment returns.
45,000 investors protest
The Punch reports that about 45,000 aggrieved investors lashed out at the group's chairman, Marksman Ijiomah, and social media influencer and the company’s brand ambassador, Amanda Chisom.
Reports say the investors have called out the trio of Ijioma, Chisom and Harrison Gwamnishu, a social media promoter, for luring them into what many say is another Ponzi Scheme.
Early on Monday, March 21, 2022, investors alleged that a leaked bank document showed that the company does not have up to N1 million in its account, as most invested more than that amount.
SEC warns Nigeria against FinAfrica Investment, Poyoyo Investment
Legit.ng earlier reported that Nigeria’s Securities and Exchange Commission (SEC) warned the public about 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.
The Exchange said the operations of the outfits are illegal as the Commission does not recognise them.
In its management circular, published on its website on Tuesday, December 27, 2021, the SEC said that it did not authorise the companies' operational styles.
Source: Legit.ng
