The Securities and Exchange Commission (SEC) has issued a fresh warning to Nigerians over the activities of GVEST Global and its associated entities, cautioning that the outfit is operating like a Ponzi scheme.
The Commission disclosed that GVEST Global has been illegally presenting itself as an investment adviser and fund manager, while promoting unregistered schemes to unsuspecting members of the public.
According to the regulator, the company trades under several names, including GVEST (Alausa) Cooperative Multipurpose Limited, GVEST Investment Limited, and GTEXT Holdings. None of these entities, the SEC stressed, holds the licence required to operate or solicit investments in Nigeria’s capital market.
The watchdog noted that GVEST Global has relied heavily on aggressive promotions across social media and online forums, a tactic often linked with fraudulent investment schemes. It added that its investigations point to features typically seen in Ponzi operations.
“The findings reveal that the company’s activities bear the classic hallmarks of a Ponzi scheme,” the Commission cautioned.
SEC advised members of the public to avoid dealing with GVEST Global or any of its representatives, underlining that anyone who does so is acting entirely at their own risk. It also reminded investors to always confirm the registration status of companies and promoters on the Commission’s official portal before committing their funds.
This alert forms part of a wider crackdown on fraudulent operators exploiting Nigerians’ quest for quick and high returns. In recent months, the Commission has issued a series of notices against platforms enticing investors into unregistered and unauthorised schemes.
Earlier this year alone, the SEC raised concerns about seven other outfits it described as illegal operators running schemes with Ponzi characteristics. Among them were Pocket Option, which falsely paraded itself as an online investment adviser and fund manager, and Forsman & Bodenfors Ltd (F&B), which claimed to be the Nigerian arm of a Swedish advertising firm.
The list also included Crypto Bridge Exchange (CBEX), where investors reportedly lost billions of naira, and Sapphire Scents Limited, which presented itself as an investment adviser while promoting an unregistered product.
In each case, the regulator reaffirmed that such firms are not authorised to solicit funds or provide investment services in Nigeria, reiterating that investors who engage with them assume the full risk. It also reminded the public that an online or social media presence does not equate to legitimacy.
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