The Securities and Exchange Commission (SEC) has announced it will begin a formal investigation into a suspected Ponzi scheme linked to an entity operating under the name FF Tiffany, which is believed to have defrauded Nigerians of several billions of naira.
In a statement released on Tuesday, the SEC said early findings suggest the scheme lured investors with promises of unusually high and unrealistic returns, resulting in widespread financial losses.
The Commission described the operation as a serious risk to investor trust and a threat to the stability of Nigeria’s financial system.
“The SEC is collaborating with law enforcement agencies and other relevant authorities to ensure that everyone involved in this illegal scheme is held accountable,” the statement read.
According to the SEC, anyone found guilty will face prosecution under the Investment and Securities Act (ISA) and relevant regulatory laws.
The Commission also reiterated its longstanding warning to the public to steer clear of Ponzi schemes or any unregistered investment ventures that claim to offer guaranteed or inflated returns.
“These schemes are not registered with the SEC and do not offer any form of legal investor protection,” it warned.
The SEC disclosed that it is currently investigating 79 such schemes and will release findings once the investigations are complete.
Investors were urged to always verify the legitimacy of any investment company or product by checking its registration status on the SEC website or contacting the Commission through official channels.
The SEC reaffirmed its commitment to protecting investors, promoting transparency, and safeguarding trust in Nigeria’s capital market.
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