Ponzi fraud: Expert wants establishment of compensation fund to assist victims
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By Ginika Okoye
A professor of Capital Market, Uche Uwaleke, has called for the establishment of a National Compensation Fund to assist victims of proven Ponzi frauds.
Uwaleke, also the President, Capital Market Academics of Nigeria (CMAN), made the call at a virtual workshop on Ponzi schemes in Abuja.
According to him, the fund can be sourced partly from regulatory fines.
Uwaleke, who expressed concerns on the growing effect of Ponzi scheme on citizens, also called for urgent actions to curb the menace.
He urged the National Broadcasting Commission (NBC) and Nigerian Communications Commission (NCC) to prohibit media outlets, telecom operators and online platforms from running advertisements or promotions of unlicenced investment schemes, with penalties for violations.
The expert suggested that the Advertising Regulatory Council of Nigeria (ARCON) and NBC require advertising clearance for all investment schemes from a Financial Promotions Oversight Unit within the Securities and Exchange Commission (SEC).
Uwaleke said that SEC, in partnership with the Federal Ministry of Information and National Orientation, must consciously embark on continuous nationwide financial literacy campaigns, warning citizens against Ponzi and pyramid schemes.
“We must hold influencers and celebrities legally liable for endorsing unlicenced investment platforms, introduce endorsement disclaimers with penalties, for non-compliance.
“Mandate Central Bank of Nigeria (CBN) to require banks and payment platforms to flag unusual transaction patterns linked to suspected Ponzi schemes and report suspected schemes to SEC and Economic and Financial Crimes Commission (EFCC).
“Mandate a joint task force comprising SEC, CBN, EFCC, Nigerian Financial Intelligence Unit (NFIU) with a dedicated budget and a real-time intelligence-sharing platform,” he said.
Uwaleke suggested that social media platforms should also de-platform, flag or restrict investment schemes not registered with SEC. (NAN)(www.nannews.ng)
Edited by Chinyere Nwachukwu/Ese E. Ekama–Williams
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