SEC warns public against rising ‘money-doubling’ investment schemes
The Securities and Exchange Commission (SEC) has issued a warning to the public over the rising number of suspected fraudulent investment operations, popularly known as “money-doubling” schemes being promoted on some television stations nationwide.
In a public notice, the SEC said these schemes typically promise unusually high returns with little or no risk, a hallmark of fraudulent activity meant to entice unsuspecting individuals to part with their money.
The Commission stressed that none of the schemes currently being advertised have been approved, authorised, or licensed by the SEC, and urged the public to exercise caution and avoid engaging with unlicensed investment entities.
The SEC also cautioned individuals and organisations promoting such schemes that their actions constitute a criminal offence under Section 144(1) of the Securities Industry Act, as amended, and Section 294(1)(b) of the Companies Act, which prohibit public invitations or advertisements on investment products without proper licensing.
Members of the public were encouraged to verify the licensing status of any investment firm or promoter by contacting the Commission’s toll-free line (0800100065), office lines (0302 768 970–2), or email ([email protected]).
The SEC added that several entities have already been identified for engaging in these unlawful advertisements, though their names were not immediately disclosed.
The Commission reaffirmed its commitment to safeguarding investors and ensuring a fair, transparent, and efficient securities market.
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