SEC, Police partner to tackle Ponzi scheme operators

By Obas Esiedesa, Abuja

The Securities and Exchange Commission (SEC) and the Nigeria Police Force (NPF) have agreed to strengthen collaboration to combat Ponzi schemes, illegal investment operations and cryptocurrency fraud, in a bid to protect the savings and financial aspirations of Nigerians.

The commission disclosed this in a statement on Wednesday following a meeting between its Director-General, Dr Emomotimi Agama, and the Inspector-General of Police (IGP), Kayode Egbetokun, in Abuja.

Agama said the SEC, as the regulator of Nigeria’s capital market, is mandated to protect investors, ensure fair, efficient and transparent markets, and promote economic growth built on trust through rule-making, licensing of operators and market surveillance.

However, he noted that the commission faces challenges from fraudulent operators who operate outside the regulatory framework, exploit public trust and promise unrealistic returns, sometimes as high as 200 per cent in 30 days.

“They cloak their deceit in the glamorous but often misunderstood language of cryptocurrency and forex trading. They target the vulnerable, the optimistic and the unsuspecting, leaving behind shattered lives, depleted pensions and broken trust.

“This is not just a financial crime; it is a social menace that erodes public confidence in our entire financial system,” he said.

Agama explained that while the SEC identifies regulatory breaches and market infractions, the police possess the constitutional mandate, investigative capacity and nationwide presence required to track, arrest and prosecute offenders.

He said fraudsters currently exploit gaps between regulatory detection and criminal enforcement, adding that the partnership aims to close such gaps.

According to him, the proposed collaboration will be anchored on joint intelligence and operations, capacity building and knowledge transfer, streamlined enforcement processes, and a national public awareness campaign.

The SEC boss advocated the establishment of a dedicated SEC–NPF task team combining market intelligence, forensic accounting and expertise in complex financial schemes with police investigative and intelligence-gathering capabilities.

“This team will serve as a rapid-response unit to emerging fraud schemes,” he added.

Agama also sought the IGP’s approval to formalise collaboration with the Cybercrime Unit of the Nigeria Police Force through a Memorandum of Understanding to enhance the safety of Nigeria’s cyberspace.

“The fight against financial crime is a fight for the soul of our economy. It is a fight for the widow who has lost her savings, the youth lured by fake crypto promises and the retiree seeking safe returns.

“The SEC cannot win this fight alone, just as the police should not have to decipher complex financial schemes without specialist support. Together, however, we form an impenetrable shield,” he said.

In his response, IGP Egbetokun assured the SEC of the police force’s readiness to collaborate and strengthen partnership with the commission to ensure effective enforcement.

He said the role of the SEC is critical to Nigeria’s economic stability and growth, noting that improved collaboration and support would enhance enforcement outcomes in the capital market.

“If the police unit working with the SEC is strengthened, it will make a significant impact on enforcement efforts. Effective enforcement comes with numerous benefits for the economy,” the IGP added.

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