A Ponzi scheme is a scheme where a participant attempts to make money solely by recruiting new participants into a programme with a promise of returning a high return within a short period of time for doing nothing other than handing over one’s money and getting others to do the same.
This is the definition of a Ponzi scheme given by Mrs Anastasia Braimoh, Principal Partner, Laurel Francis & Associates, one of the panellists at the 16th Annual Business Law Conference of the Nigerian Bar Association’s Section on Business Law (NBA-SBL) held in Abuja.
The conference themed: “Recent Developments in the Business Law Environment,” brought together decision-makers in both the public and private sectors, policy formulators, regulators and industry practitioners with a total of 11 plenary’s sessions which addressed the issues that affect the business environment.
How to identify and tackle Ponzi scheme in Nigeria
Speaking on tackling Ponzi schemes in Nigeria, Mrs Braimoh said everyone knows what a Ponzi scheme is but the problem is identifying it.
She said, “Basically a Ponzi scheme is a scam, it’s just robbing Peter to pay Paul. We all know what a Ponzi scheme is but identifying it is the problem. Even Professors have been duped, literate people too have been duped.”
Speaking on the characteristics of a Ponzi scheme she said, “First of all, it is an unregistered scheme that is not regulated, it’s illegal…
