The Securities and Exchange Commission (SEC) of Ghana has issued a stern warning to the general public following the identification of 33 television stations nationwide airing advertisements for suspected fraudulent money doubling investment schemes. These schemes often lure unsuspecting individuals by promising unusually high returns with little or no risk, a tactic commonly used in financial scams to deceive investors. The SEC emphasized that none of these schemes have been approved, authorized, or licensed to conduct investment activities in Ghana, rendering them illegal and potentially harmful to investors.
In its public notice, the SEC highlighted that operators promoting these schemes are violating key legal provisions, including Section 144(1) of the Securities Industry Act and Section 294(1)(b) of the Companies Act. These laws explicitly prohibit unlicensed public invitations and advertisements related to securities products. The Commission warned that those involved in these illegal activities could face criminal prosecution, underscoring the seriousness of the offenses and the government’s dedication to curbing financial fraud within the capital market.
This warning from the SEC comes at a critical time when financial fraud and investment scams have been on the rise, with past scandals causing significant losses to thousands of Ghanaian investors. The Commission is actively monitoring these developments to protect investors’ funds and maintain public trust in the securities market. It urged the public to exercise extreme caution and encouraged potential investors to verify the licensing status of any investment firm before committing their money.
To assist the public in verifying legitimate investment opportunities, the SEC provides easy access to information through its toll-free line (0800 100 065), main contact line (0302 768 970–2), and official email (info@sec.gov.gh). The Commission reaffirmed its commitment to investor protection and the promotion of a transparent, trustworthy environment for securities trading. By staying vigilant and informed, the public can avoid falling victim to these deceptive schemes and contribute to a safer financial market in Ghana.
Source: Ohemaa Adusi-Poku