LIVE UPDATES
The President and Chairman of the Council of the Chartered Institute of Stockbrokers (CIS), Oluropo Dada, has expressed concern about the rising threat posed by fraudulent investment schemes, cautioning that any investment product that is not registered with the Securities and Exchange Commission (SEC) should be viewed as a Ponzi scheme.
“Be wary of an excessive love for money, as Ponzi schemes may target you next; take heed. The Eagle cares for all,” added the Economic and Financial Crimes Commission (EFCC), warning Nigerians against an inordinate craving for wealth.
During the institute's 30th Annual General Meeting (AGM) in Lagos over the weekend, Dada urged investors to remain vigilant, emphasizing that platforms that promise unrealistic, guaranteed returns are often traps aimed at defrauding individuals.
“Any investment scheme that isn't registered is a Ponzi scheme,” Dada stressed. “They commonly masquerade as legitimate entities but are ultimately designed to deceive hardworking Nigerians.”
His statements follow the recent failure of CBEX, a digital investment platform that allegedly erased over N1.3 trillion in investors’ money, prompting renewed regulatory warnings and actions by the SEC against unregistered investment operators.
Dada encouraged investors to prioritize their safety by confirming the registration status of any investment offering, explaining that legitimate schemes must possess SEC licensing.
“Steer clear of platforms offering quick, guaranteed returns; that’s a typical warning sign,” he advised.
In addition to investor protection, Dada reviewed the institute’s initiatives in 2024 aimed at revitalizing the securities profession for the future.
He disclosed that the 'Catch Them Young' initiative, designed to draw young talent into the capital market profession, has gained significant traction through strategic collaborations with higher education institutions.
According to him, ongoing partnerships with universities aim to establish degree and postgraduate linkage programs centered on Securities and Investment Studies, thereby making the profession more accessible to the youth, even those without a finance background.
The EFCC shared this advice in a brief post on its X handle yesterday, amid continuing investigations into CBEX’s alleged fraud, which reportedly collapsed on April 14.
Over the weekend, the Eagle declared eight individuals wanted for their suspected involvement in a fraudulent scheme associated with the online trading platform.
This action followed a Federal High Court in Abuja granting the EFCC permission to arrest and hold individuals linked to the promotion of the CBEX scheme.
Justice Emeka Nwite issued the order based on a request from the EFCC’s counsel, Fadila Yusuf, who sought the court’s approval to detain the promoters while investigations into the alleged crimes and their potential prosecution are completed.
The commission indicated that during its inquiry, it discovered that ST Technologies, although registered with the Corporate Affairs Commission (CAC), lacked SEC authorization to engage in investment activities.
