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.
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.
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, Naijaonpoint 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.