If your investment promises over 20% returns it is exhibiting fraudulent traits – Securities and Exchange Commission

Deputy Director General of Securities and Exchange Commission, Paul Ababio
  • The SEC has warned the public to be cautious when doing business with investment firms.
  • Deputy Director of SEC said investment firms which promise more 20% and more interest have fraudulent tendencies.
  • Paul Ababio added that potential investors should check the treasury bill rate before making investments.

The Securities and Exchange Commission Ghana (SEC) has reiterated to the Ghanaian public to consider the returns investment firms have to offer before doing business with any.

The Deputy Director of SEC, Paul Ababio said that any investment firm which promises over twenty percent interest when the inflation rate is nine percent is not sustainable.

He explained that potential investors should check the treasury bill rate which is around fourteen percent to nineteen percent. He said any scheme offering twenty or more percent interest is exhibiting fraudulently traits and must be avoided.

Ghana has been faced with a number of Ponzi schemes in recent times. A number of Ghanaians have lost huge sums of money which they invested in such schemes.

Aside from the Menzgold saga which is still ongoing, the recent Ponzi scheme in Ghana is that of a company called Global Coin Community (GCCH).

Ghanaians deposited huge sums of money with the promise of high returns from the company.

However, the customers have not received their interest or principal amounts as promised by the company.

Some have promised to take legal action against the owners of the schemes. They believe the court will help them retrieve their money.

Others have petitioned the government and other state agencies to help them get their principal amounts back.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke