The Securities and Exchange Commission (SEC) has once again raised the alarm over an unregistered investment outfit, GVEST Global, and its associated entities, warning Nigerians to steer clear of it because it operates like a Ponzi scheme.
According to the capital market regulator, the company has been illegally parading itself as an investment adviser and fund manager while promoting unregistered investment schemes to unsuspecting members of the public.
In its notice, the Commission disclosed that GVEST Global also operates under different names, including GVEST (Alausa) Cooperative Multipurpose Limited, GVEST Investment Limited, and GTEXT Holdings.
However, none of these entities, the SEC emphasized, is licensed to operate or solicit investments within Nigeria’s capital market.
Social media promotion
The regulator further noted that GVEST Global has been aggressively promoted across social media platforms and online forums, tactics often associated with Ponzi operations.
“Investigations have revealed that its operations exhibit typical indicators and characteristics commonly associated with Ponzi schemes,” the Commission warned.
- SEC, therefore, advised the investing public to avoid dealing with GVEST Global or any of its representatives, stressing that anyone who chooses to do so is acting at their own risk.
- The regulator also reminded Nigerians of the need to always verify the registration status of companies and investment promoters on its official portal before committing their funds.
What you should know
This warning comes as part of the SEC’s broader clampdown on fraudulent investment promoters that continue to take advantage of Nigerians’ appetite for high returns.
In recent months, the Commission has issued several alerts against entities luring unsuspecting investors into schemes that lack proper registration or regulatory approval.
Before the latest one, Nairametrics reported the SEC had this year alone raised the red flag on seven other investment platforms, describing them as illegal operators running schemes that bear the hallmarks of Ponzi operations.
- Some of such platforms include Pocket Option, which is being promoted as an online investment adviser/fund manager, and Forsman & Bodenfors LTD (F&B), which parades itself as the Nigerian arm of a Swedish advertising firm, F&B.
- Others include the popular Crypto Bridge Exchange (CBEX), to which several Nigerians had lost billions of Naira, and Sapphire Scents Limited, which holds itself out as an Investment Adviser/Fund Manager promoting an unregistered investment scheme.
- In all the cases, the SEC has reiterated that these platforms are not authorized to solicit funds or offer investment services in Nigeria, adding that investors engaging with them do so at their own risk.
- The Commission also reminded the public that the presence of a company online or on social media does not imply legitimacy.
How do we confirm authorised investment platforms, at least within Nigeria
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