The Securities and Exchange Commission (SEC) has issued a strong warning asking all unlicensed financial investment schemes to close down their operations or risk facing the law.
The Commission is cautioning that the activities of such entities pose a threat to the financial sector which need to be stopped.
The SEC says the unlicensed institutions are able to lure the unsuspecting public via various mass media advertising platforms.
According to the Commission, the outrageous interest rates of between 72 and 840 percent annually, also leaves much to be desired for any realistic investment package.
The SEC again believes that promising clients with huge returns but failing to disclose the risks or ability to pay, are traces of pyramid or ponzi schemes.
Meanwhile SEC has cautioned the public to be wary of these schemes and desist from investing their life savings in these unlicensed instruments.
The caution also comes at a time where sections of the public are embarking on panic withdrawals over fears they will lose their investments following recent developments in the financial sector.