The Securities and Exchange Commission (SEC) says it secured convictions and jail terms for seven companies and their directors involved in Ponzi schemes within one month.

The ​‌⁠​‍‍⁠⁠‍‌‌‍‌​‌‌​‌​Director-General of the SEC, Emomotimi Agama, disclosed this during an appearance on Channels Television in Abuja.

Mr Agama said the commission worked closely with the Economic and Financial Crimes Commission (EFCC) to secure the convictions.

He described Ponzi schemes as offers that appeared too good to be true and expressed concern over their prevalence in Nigeria.

According to him, unscrupulous Nigerians perpetrate such schemes to defraud unsuspecting investors.

Mr Agama said the Investment and Securities Act (ISA) empowered the commission to prosecute offenders and secure convictions.

“So, it was important that we have a legal backing that could enable us to send them to jail.

“The Investment and Securities Act has empowered us. We have sent people to jail because we work very closely with the EFCC. Precisely a month ago, about seven companies with their directors were jailed; we got convictions; they were running Ponzi schemes,” he said.

The director-general said the SEC also collaborated with the police and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to tackle Ponzi schemes.

He said the commission now hosted a unit of the Nigeria Police Force and the Ministry of Justice through the Office of the Attorney-General.

He said the arrangement had eliminated the need to go outside the commission’s premises to initiate arrests or prosecutions.

Mr Agama said the process of bringing Ponzi scheme operators to justice had become easier.

“So, if anyone is involved in any of these Ponzi schemes, it is easy; there is no bureaucracy, and we will get hold of the person and send the person to jail.

“It will be my utmost pleasure to see more of these people in jail and we will make sure that happens,” he said.

Mr Agama said the commission was establishing more offices across states to provide Nigerians with accurate and adequate capital market information. 

(NAN)