Anti-fraud expert charges SEC to beef up monitoring

Security and Anti-fraud expert, Richard Kumadoe has advised the Securities and Exchange Commission (SEC) to be proactive in preventing Ghanaians from falling victims to ‘Ponzi’ schemes.

He noted that the Commission’s main job is not to close down businesses but to put in place proactive policies to protect the Ghanaian from losing their monies to fraudulent persons and businesses.

“The monitoring department of SEC needs to beef up their work and investigate these ponzi schemes and protect the state. In this case, the state is the Ghanaian people. Better monitoring obviously leads to proactiveness and saves the ordinary Ghanaian from losses”, he said.

To him, one of the best ways for SEC to be proactive is for them to automate their monitoring. “If this is done, the Ghanaian will not be duped because the Commission will immediately identify a ponzi scheme when it springs up and nip it in the bud”.

He made this comment in an interview with Samuel Eshun, host of the Happy Morning Show aired on Happy 98.9 FM and e.TV Ghana after SEC issued a warning, advising Ghanaians from doing business with CHY Century Heng Yue Group Limited/Sairui e-commerce Ghana Limited.

SEC said the company has not been licensed to carry out any Capital Market activity including investing or trading for returns as mandated by Section 3 of the Securities Industry Act, 2016 (Act 929).

Richard Kumadoe noted that the name CHY Century alone gives the firm away as a ponzi scheme. “Any financial firm with a funny name and gives high interest rates is highly probable to be a ponzi scheme”, he advised.