The President andchairman of Council, Chartered Institute of Stockbrokers CIS, Oluropo Dada, has said that any unregistered investment in the Nigerian capital market is regarded as a Ponzi Scheme, designed to swindle unsuspecting investors.
Following the recent sudden collapse of digital investment platform, CBEX, with reports indicating over N1.3 trillion loss to investors, Securities and Exchange Commission SEC, has renewed its campaign against Ponzi schemes and the need for investors to desist from patronizing unregistered investment products and platforms.
Addressing securities dealers at the 30th Annual General Meeting AGM of the Institute in Lagos, Dada advised the investing public to protect their hard-earned money by avoiding fraudulent investment schemes, particularly Ponzi Scheme that continue to defraud unsuspecting Nigerians.
He stated: Any unregistered Investment Scheme is Ponzi. It is even more critical in light of the recent Ponzi scheme that swindled several Nigerians out of their hard-earned money. These schemes often disguise themselves as legitimate platforms offering fast, guaranteed returns but they are nothing more than financial traps.