SEC vows to end il­le­gal in­vest­ment schemes

Daily Trust - - CAPITAL MARKET - By Hamisu Muham­mad

The Di­rec­tor Gen­eral of the Se­cu­ri­ties and Ex­change Com­mis­sion (SEC) Ms. Arunma Oteh has re­it­er­ated that un­reg­is­tered in­vest­ment schemes in the coun­try would not be tol­er­ated.

She warned that the com­mis­sion would in­voke the full pro­vi­sions of the law to deal with those per­pe­trat­ing such un­whole­some acts in the na­tion’s in­vest­ment en­vi­ron­ment.

Oteh, who spoke at the weekend dur­ing a Town Hall meet­ing with the Com­mis­sion’s staff in Abuja, warned Nige­ri­ans to be wary of doubt­ful in­vest­ment schemes that promised un­usual re­turns, point­ing out that there are av­enues for po­ten­tial in­vestor to as­cer­tain the cred­i­bil­ity or other­wise of such schemes when­ever they are be­ing flaunted to the in­vest­ing pub­lic.

She lamented: “It is un­for­tu­nate that people will set up schemes, en­rich them­selves and take money from people. They will not be tol­er­ated by the Com­mis­sion and any­one found en­gag­ing in such acts will be made to face the law”

It would be re­called that only last Jan­uary, the Com­mis­sion sealed the premises of an un­reg­is­tered fund man­ager, New Na­tion, in 32 states of the fed­er­a­tion in­clud­ing the Federal Cap­i­tal Ter­ri­tory (FCT), in an un­prece­dented reg­u­la­tory clam­p­down that elicited in­vestors’ com­men­da­tions.

The Com­mis­sion’s Head of En­force­ment, Mr. Eric Elu­jekor, de­scribed the or­gan­i­sa­tion as an il­le­gal fund man­ager that was not reg­is­tered with the SEC but ex­isted with the sole aim of de­ceiv­ing the pub­lic.

He dis­closed that the SEC has pre­vi­ously sealed some of­fices of the com­pany in Port Har­court, Kaduna and Sokoto.

He ex­plained: “It is a com­pany that has so many of­fices. When we got knowl­edge of what they say they wanted to do, we in­vited the per­son in charge to tell us what he was do­ing. He came here and told us that he had “21 pil­lars” and that was the term he used. And those pil­lars rep­re­sent a project that they in­tend to do and all these pil­lars are un­der a con­glom­er­ate they called New Na­tion.

In­ves­ti­ga­tions re­vealed that the com­pany had of­fices in most states of the coun­try.

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