EFCC cautions Nigerians against greed
President and Chairman of Council, Chartered Institute of Stockbrokers (CIS), Oluropo Dada, has raised the alarm over the growing menace of fraudulent investment platforms, warning that any investment product not registered with the Securities and Exchange Commission (SEC) should be considered a Ponzi scheme.
“Love money too much, and Ponzi schemes will love you as their next target; be guided. The Eagle loves you all,” the Economic and Financial Crimes Commission (EFCC), added, while cautioning Nigerians against the excessive desire for money.
At the 30th Annual General Meeting (AGM) of the institute in Lagos over the weekend, Dada cautioned investors to be vigilant, stressing that platforms promising unrealistic, guaranteed returns were often financial traps designed to defraud the public.
“Any unregistered investment scheme is Ponzi,” Dada emphasised. “They often disguise themselves as legitimate platforms, but are ultimately engineered to swindle hardworking Nigerians.”
His remarks came in the wake of the collapse of CBEX, a digital investment platform that reportedly wiped out over N1.3 trillion in investors’ funds, triggering renewed regulatory warnings and enforcement by the SEC against unregistered investment operators.
Dada urged investors to prioritise safety by verifying the registration status of any investment offering, noting that legitimate schemes must be licensed by the SEC.
“Avoid platforms promising fast, guaranteed returns; that’s a classic red flag,” he advised.
Beyond investor protection, Dada reviewed the institute’s efforts in 2024 to reposition the securities profession for the future.
He revealed that the ‘Catch Them Young’ campaign, targeted at attracting youth into the capital market profession, gained significant momentum through strategic partnerships with tertiary institutions.
According to him, ongoing collaborations with universities aim to introduce degree and postgraduate linkage programmes focused on Securities and Investment Studies, making the profession more accessible to youths, even those without a finance background.
EFCC issued the advice in a terse post on its X handle yesterday. This came amid the ongoing investigation into the alleged fraud perpetrated by CBEX, which reportedly crashed on April 14.
The Eagle, at the weekend, declared eight persons wanted over their alleged involvement in a fraudulent scheme linked to the online trading platform.
The move came on the heels of the Federal High Court in Abuja granting EFCC’s request to arrest and detain persons found promoting the CBEX scheme.
Justice Emeka Nwite issued the order following submissions by the counsel for the EFCC, Fadila Yusuf, seeking the court’s approval to detain the promoters pending the conclusion of investigations into the alleged offences and their possible prosecution.
The commission stated that during the investigation, it found that ST Technologies, while registered with the Corporate Affairs Commission (CAC), was not authorised by the SEC to conduct investment activities.