SEC flags funding platform GVEST World as Ponzi scheme, cautions Nigerians 

The Securities and Alternate Fee (SEC) has as soon as once more raised the alarm over an unregistered funding outfit, GVEST World, and its related entities, warning Nigerians to avoid it as a result of it operates like a Ponzi scheme.

In accordance with the capital market regulator, the corporate has been illegally parading itself as an funding adviser and fund supervisor whereas selling unregistered funding schemes to unsuspecting members of the general public.

In its discover, the Fee disclosed that GVEST World additionally operates below totally different names, together with GVEST (Alausa) Cooperative Multipurpose Restricted, GVEST Funding Restricted, and GTEXT Holdings.

Nevertheless, none of those entities, the SEC emphasised, is licensed to function or solicit investments inside Nigeria’s capital market.

Social media promotion 

The regulator additional famous that GVEST World has been aggressively promoted throughout social media platforms and on-line boards, techniques usually related to Ponzi operations.

“Investigations have revealed that its operations exhibit typical indicators and traits generally related to Ponzi schemes,” the Fee warned.

• SEC, due to this fact, suggested the investing public to keep away from coping with GVEST World or any of its representatives, stressing that anybody who chooses to take action is performing at their very own threat.
• The regulator additionally reminded Nigerians of the necessity to at all times confirm the registration standing of corporations and funding promoters on its official portal earlier than committing their funds.

What it is best to know 

This warning comes as a part of the SEC’s broader clampdown on fraudulent funding promoters that proceed to reap the benefits of Nigerians’ urge for food for prime returns.

In current months, the Fee has issued a number of alerts towards entities luring unsuspecting buyers into schemes that lack correct registration or regulatory approval.

Earlier than the newest one, Nairametrics reported the SEC had this 12 months alone raised the purple flag on seven different funding platforms, describing them as unlawful operators operating schemes that bear the hallmarks of Ponzi operations.

• A few of such platforms embody Pocket Possibility, which is being promoted as an internet funding adviser/fund supervisor, and Forsman & Bodenfors LTD (F&B), which parades itself because the Nigerian arm of a Swedish promoting agency, F&B.
• Others embody the favored Crypto Bridge Alternate (CBEX), to which a number of Nigerians had misplaced billions of Naira, and Sapphire Scents Restricted, which holds itself out as an Funding Adviser/Fund Supervisor selling an unregistered funding scheme.
• In all of the instances, the SEC has reiterated that these platforms should not approved to solicit funds or supply funding providers in Nigeria, including that buyers participating with them achieve this at their very own threat.
• The Fee additionally reminded the general public that the presence of an organization on-line or on social media doesn’t indicate legitimacy.