The Securities and Exchange Commission (SEC) has disclosed that it is engaging the National Orientation Agency (NOA) as well as other regulators to curb activities of illegal fund managers.

Director General of the SEC, Lamido Yuguda, stated this in a goodwill message at the opening ceremony of a National Fact-Checking Course organised by the National Orientation Agency in Abuja, yesterday.

Yuguda, who was represented by the Executive Commissioner, Corporate Services of the SEC, Ibrahim Boyi, said Nigeria’s investment climate has continued to witness the proliferation of illegal fund managers, popularly referred to as ponzi schemes as promoters of these schemes continue to defraud millions of citizens, promising them mind-boggling returns on investments.

According to him, “Such schemes, with all the illegality and promises of unrealistic returns, have burnt the fortunes of many ambitious investors, from Yuan Dong Ponzi to Galaxy Transport, Famzhi Interbiz Limited, Cowlane and Durell, and the infamous Mavrodi Mundial Movement (MMM).

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“The upsurge of these schemes has undermined the reputation of the capital market and dampened investors’ confidence, among other things. This has created a considerable challenge to the growth of our market, and the commission is striving to change the narrative by instilling a fair, transparent, and orderly market”.

He noted that while the SEC, in collaboration with other regulators in the financial sector, strives to clamp down on operators of these fraudulent schemes, investors also have a huge role to play to ensure that they do not fall victim to their activities.

“Investors are advised to always confirm if the investment product, scheme, or company is registered with the SEC before investing. While encouraging more retail investments, we urge you to invest in securities and products approved by the SEC.”

The SEC DG described the course as a timely programme that would go a long way in checking the scourge of fake news, misinformation and disinformation.

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He said disinformation, misinformation in and fake news are often intended to instigate hate, anger and acrimony, consequently, causing disaffection, division, violence, and even war.

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