The Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) have pledged to go after operators of Ponzi schemes across Nigeria, following the collapse of digital trading platform CBEX which reportedly cost investors over ₦1.3 trillion.
While the SEC disclosed it had not yet received formal complaints against CBEX, the EFCC assured Nigerians that steps were already being taken to recover investors’ funds.
Speaking on Arise TV on Wednesday, April 16, SEC Director-General Dr Emomotimi Agama said, “As we speak today at this hour, we have not received any formal complaint from anyone regarding CBEX because if we had received any formal complaint regarding CBEX, the team at SEC would have swung into action to get who and who is involved.
“However, we sympathise very much with the people, the victims, because they are Nigerians. And of course, we will commence investigation as to where the people are and also make sure we hunt them down because the law has given us the power to take them down.”
Dr Agama said Ponzi schemes are not new, and warned that any investment scheme promising unrealistic returns should be considered suspicious.
“Ponzi schemes didn’t start today. It’s a global malaise. It started in the 20th century with a man called Charles Ponzi, who then promised that he was going to be able to give every investor 50 per cent in returns. From then on, it became a practice for so many people to defraud others of their hard-earned resources.”
He urged Nigerians to always verify the registration status of investment platforms through the SEC.
“I will take this opportunity once again to plead with Nigerians who want to invest. Please make sure you make your inquiries.
“You can ask the SEC by telephone, or by going to our website to make inquiries as to whether these persons or individuals are registered by the SEC, or whichever one you are aware that is not registered, please we ask that you inform the SEC in good time,” he said.
He also revealed that the Senate had approved ₦10 billion for market education, while the SEC would be setting up more offices nationwide to better engage the public.
Meanwhile, EFCC spokesperson Dele Oyewale, speaking on Channels TV’s Morning Brief on Wednesday, confirmed that the commission had already been tracking CBEX before the public backlash erupted.
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“We were not waiting for Nigerians to call us before we started our work. Of course, we have been working. We were not beaten by what actually happened.
“Our dragnet is wide, our intelligence is very effective, and we were tracking that digital trading platform,” he said.
According to Oyewale, EFCC had earlier flagged 58 Ponzi companies in March and warned Nigerians.
“You will recall that March 11 this year, the executive chairman of the EFCC, Mr. Ola Olukoyede, had called to instruct us to alert Nigerians,” he said.
He stressed that the commission had already profiled CBEX and would ensure the recovery of investor funds.
“No, it will be very irresponsible and unprofessional if the EFCC says that you have lost your money; there is nothing the commission can do about it.
“We are already working with Interpol and our international development agencies to ensure that these people are brought to book.
“Investors are going to get their money back, and we are already working on that. Everything I’m saying is that this kind of thing could have been averted.
“Be it as it may, it was not averted; we are not going to throw our hands out helplessly and say that there’s nothing EFCC can do about it.
“We are more responsible and professional than that. We have spread out our wings by talking to Interpol and the necessary agencies across the world to be able to bring all the actors to book, and investors will have their money back,” Oyewale added.
While acknowledging the process might take time, he reiterated EFCC’s commitment to justice and recovery.