SEC Names Another Ponzi Scheme as it Intensifies Crackdown on Illegal Investment Firms
- The SEC has warned Nigerians against investing in GVEST Global, describing their operations as Ponzi-like and illegal
- The commission noted that the company has been falsely posing as an investment adviser and fund manager
- The regulator therefore advised the public and potential investors always to verify companies’ registration status on its portal
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The Securities and Exchange Commission (SEC) has issued a fresh warning to Nigerians about GVEST Global and its related entities, cautioning that the outfit runs like a Ponzi scheme.
The regulator revealed that the company has been illegally presenting itself as an investment adviser and fund manager while enticing the public with unregistered investment opportunities.
Source: UGC
The warning is part of the SEC’s ongoing efforts to curb fraudulent investment operators who exploit Nigerians’ strong desire for quick and high returns.
SEC says firm runs like a Ponzi scheme
In its public notice, the SEC identified other names under which GVEST Global operates, including GVEST (Alausa) Cooperative Multipurpose Limited, GVEST Investment Limited, and GTEXT Holdings.
The Commission stressed that none of these entities has the required license to offer or manage investments in Nigeria.
It added that GVEST Global has been widely advertised through social media and online platforms, strategies often linked with fraudulent schemes.
The Commission warned:
“Investigations have revealed that its operations exhibit typical indicators and characteristics commonly associated with Ponzi schemes.”
The Commission urged Nigerians to avoid any dealings with the company or its agents.
It further reminded investors to always confirm the regulatory status of investment firms through its official website before committing funds.
This alert comes amid the SEC’s ongoing crackdown on fraudulent operators exploiting Nigerians’ desire for high-yield returns.
In the last year, the Commission has flagged suspicious platforms, such as Pocket Option, Forsman & Bodenfors Ltd (F&B), Value Growth Platform, Sapphire Scents Limited, amongst many others.
Earlier this year, the SEC clamped down on Crypto Bridge Exchange (CBEX), a major investment scam which allegedly defrauded investors of billions of naira.
SEC releases link for Nigerians to verify companies
The SEC has reiterated its call for Nigerians to exercise caution when approached with investment offers, stressing the importance of verifying the authenticity of any company before committing their money.
According to the regulator, investors can easily confirm whether a firm is duly registered or licensed to operate by using its official verification portal.
The process is simple; individuals only need to type in the company’s name and search to obtain details about its approval status.
SEC emphasised that this step is crucial in protecting investors from fraudulent operators and illegal investment schemes.
Source: Getty Images
FG bans online forex trading platforms, others
In related news, Legit.ng reported that President Bola Tinubu signed the Investments and Securities Act 2025 into law.
This law introduced several reforms, including a ban on online foreign exchange (forex) trading platforms and other online investment platforms.
The SEC warned Nigerian investors to ensure that they only invest with registered and regulated bodies.
Source: Legit.ng
