Ponzi schemes promoters in Nigeria now face 10 years jail – Newstrends
Connect with us

metro

Ponzi schemes promoters in Nigeria now face 10 years jail

Published

on

Ponzi schemes promoters in Nigeria now face 10 years jail

The Securities and Exchange Commission, SEC, has warned that promoters and operators of any Ponzi Scheme in the country risk a penalty of not less than N20 million or imprisonment to a term of 10 years or both, upon conviction as prescribed by the provisions of the newly signed Investments and Securities Act 2025.

The SEC’s Director-General, Dr. Emomotimi Agama who stated this in Abuja, said the goal of the new legislation is to strengthen the legal framework governing Nigeria’s capital market, better protect investors, and introduce reforms that will promote market integrity, transparency, and sustainable growth.

He explained that previously, the SEC lacked the legal power to prosecute Ponzi scheme operators, which made it difficult to bring offenders to justice.

However, under the new law, those convicted of operating Ponzi schemes face a jail term of 10 years or more. “With the new law, they now face a 10-year jail term and beyond,” he said.

He further explained that the Act stipulates a minimum fine of N10 million for anyone operating a Ponzi scheme in Nigeria.

READ ALSO:

“So, N10 million is not the entire penalty or the entire money that will be charged or sanctioned to any suspecting or any accused capital market or non-capital market operator. It is just part of the penalties and or the sanctions that will be meted against such persons,” Agama explained.

The SEC Director-General also said that sanctions will include “disgorgement,” meaning that any profits or gains obtained from defrauding Nigerians will be recovered adding “It is not about the quantum of the fraud, it is about sanctions that would deter people from even getting into it”.

Also, Agama said the new ISA has also provided the SEC with the power to be able to obtain and request telephone conversations and all other conversations that are required to Prosecute Ponzi operators.

“We recognize that a lot of Nigerians have fallen prey to these sponsor schemes and the reason why that is the case is because there were no sanctions. You know enough to deter them from doing this so what this Act has done is to introduce measures for Ponzi scheme operators and intending Ponzi scheme operators not to be able to do this again against the wish and will of Nigerians.

“Protecting the investors in Nigeria is a cardinal responsibility of the SEC and this law has provided the SEC with stronger powers to be able to do that. This law has also been able to provide the SEC with the power to be able to search phones and get phone records for people who are interested in dealing with Nigerians or interested in duping Nigerians. We are able to get these records and quickly provide enforcement actions for the people that are involved so for us it is limitless,” he added.

Ponzi schemes promoters in Nigeria now face 10 years jail

metro

Court orders FG to take over 7 properties of ex-FBN personnel

Published

on

Court orders FG to take over 7 properties of ex-FBN personnel

A Federal High Court sitting in Ikoyi, Lagos, has granted an order for the permanent forfeiture of seven properties linked to Muiz Tijani Adeyinka, a former employee of First Bank Plc.

The ruling, delivered on Thursday, April 10, 2025, by Justice Dehinde Dipeolu, followed a motion filed by the Lagos Zonal Directorate of the Economic and Financial Crimes Commission (EFCC).

The assets in question include residential apartments and parcels of land across various parts of Lagos and Abuja. Among them are: Plot 9, Block 28 Itunu City, Veritas Homes & Properties Ltd., Aiyetoro, Epe; a three-bedroom flat at Le Moriah Residences Estate in Ikate, Lekki; and land in Amen Estate Phase III Extension, Abomiti Zone, along Lekki/Epe Expressway. Others are located in Idera Scheme, Arizon Estate, Itunu Residential, Tiara by Amen City, and Ochacho Real Homes in LifeCamp, Abuja.

According to a statement released by the EFCC, the court’s decision came after no objections were raised within the 14-day period allowed for interested parties to challenge the interim forfeiture, which had been previously ordered.

READ ALSO:

“No one showed cause within the 14 days window granted after the publication,” EFCC counsel Zeenat Atiku informed the court.
Supporting the application was an affidavit sworn by EFCC operative Isah Yusuf Nadabo, who stated that Tijani, during his tenure in the bank’s settlement office, exploited privileged access for personal gain.

“He, therefore, carried out illegal, unauthorised and fraudulent activities against First Bank Nigeria Plc,” Nadabo declared in the affidavit.

He further revealed that investigations had traced N35 billion allegedly obtained by Tijani and associates through these activities.

“Investigation has thus far revealed and traced the sum of N35 billion (Thirty Five Billion Naira) benefitted by Muiz Tijani Adeyinka and his cronies,” the affidavit stated.

Atiku urged the court to grant final forfeiture, arguing that the properties were suspected to have been acquired with proceeds of financial crime.

Justice Dipeolu, in granting the order, ruled that the EFCC’s application had merit and subsequently ordered the properties be forfeited to the Federal Government.

Court orders FG to take over 7 properties of ex-FBN personnel

Continue Reading

metro

Judge, son shot as bandits kidnap 13 in Katsina

Published

on

Judge, son shot as bandits kidnap 13 in Katsina

Bandits have attacked Mahuta town in Kafur Local Government Area of Katsina State, shooting a Shari’a court judge, Rabiu Mahuta, in the hand and his son.

During the attack, which occurred late Tuesday night, the assailants injured three people and kidnapped 13 others, including the judge’s wife and five of his children.

A resident who spoke to Daily Trust said the bandits arrived around 11:30 p.m. and headed straight to the judge’s residence, where they spent nearly an hour attempting to break down the door.

READ ALSO:

Despite the judge’s call to the local Divisional Police Officer for help, no security personnel arrived in time.

“When they eventually broke in, they shot him in the hand, and he collapsed. One of his sons was also injured, with a bullet grazing his forehead,” the source said.

A neighbour, who is a member of the state-owned Community Watch Corps and tried to intervene during the attack, was also shot and is currently receiving treatment at a hospital in Katsina.

Daily Trust gathered that the attackers also abducted five people from the household of one Shehu Maishayi, along with Malam Sufi Nahi and the wife of Malam Abdurrazak, who lives on the outskirts of Mahuta.

Sources said soldiers arrived only after the bandits had fled the scene.

Judge, son shot as bandits kidnap 13 in Katsina

Continue Reading

metro

EFCC plays confession video of ex-power minister in court

Published

on

Former Minister of Power, Saleh Mamman

EFCC plays confession video of ex-power minister in court

The trial of former Minister of Power, Saleh Mamman, continued on Thursday, April 10, 2025, before Justice James Omotosho of the Federal High Court, Abuja, with the prosecution presenting further evidence in a trial-within-trial to justify the admissibility of the extra-judicial statements of the defendant, who claimed that he volunteered them under duress.

Mamman is facing prosecution in relation to the Mambilla Power Project by the Economic and Financial Crimes Commission, EFCC on a 12-count charge, bordering on conspiracy to commit money laundering to the tune of N33,804,830,503.73 (Thirty-Three Billion, Eight Hundred and Four Million, Eight Hundred and Thirty Thousand, Five Hundred and Three Naira, Seventy-three Kobo).

Led in evidence by prosecution counsel, Rotimi Oyedepo, SAN, Abubakar Muhammed Kwaido an EFCC investigator maintained that Mamman made his statements to the Commission without intimidation or force.

“There was at no point I harassed or intimidated him with detention. My boss was even asking him if he could write, but he said he would ask his lawyer to write on his behalf,” he said.

In a video clip of Mamman’s statement to the Commission which was played in court, the defendant was seen clarifying to investigators in a convivial atmosphere that he chose to avoid payment for an Abuja property through financial institutions to evade detection, considering his position in the government.

READ ALSO:

“Honestly, I gave him N5million about three times. I didn’t transfer or put it in his account. I gave him cash. Why I didn’t do a transfer was because I am a civil servant and I have left my business and some of my things, so I have been very careful,” he said.

He further disclosed that the payments were made to Abubakar Mustapha Bida in relation to a house he acquired through him. Bida is the Mambilla Project Accountant. “After the payment, he then gave me the house, that is why I didn’t bring up that issue. Then I accepted the house at Kado,” he said.

Mamman was also seen in the clip narrating how he discussed the property with one Sam. “I said to Sam that there’s a house in Kado, but I have to collect the documents of the house. That’s why I told you that there’s no issue between me and him.”

He was also seen claiming that he jointly purchased another property in Wuse, Abuja with a friend who is a member of the House of Representatives, who chose to register the house with a different name. “We went together and bought the house in Wuse. It was me and my friend that joined and bought the house, but he gave another person’s name instead of his. Now I’m even struggling to get the papers for the house,” he said.

Speaking further in the clip, he said, “We bought the house from N30 to N35 million and we agreed I will be giving him the money in tranches. Things became somehow and I then left the office. He didn’t give me the papers and that’s how I left office.”

Mamman in the video, repeatedly accused Abubakar Mustapha Bida of dishonesty. “Mustapha is a liar. It was his PA that did all these things,” he said, referring to one Musbahu Idris.

Nonetheless, he admitted benefitting from the transaction. “Whether I like it or not, I benefitted, because my people have benefited from the money. That was why I was all involved in it,” he said.

In the video, he was also seen explaining to Kwaido that his lawyer has his nod to write his statements on his behalf because he was a bit under the weather.

Asked by Kwaido if he could write, he replied: “Honestly I can’t write, I’m not too strong, but as you can see, I’m about to take my medication. That’s why I spoke to him to write because I don’t want to stress myself. The doctors warned me not to stress myself. I was advised by my lawyer to come so that it will all be easy,” he said.

Justice Omotosho adjourned the matter till Monday, April 14, 2025, for continuation of trial.

EFCC plays confession video of ex-power minister in court

Continue Reading

Trending