The Securities and Exchange Commission (SEC) has warned Nigerians against investing and engaging in other related activities with the Ponzi scheme tagged ‘GVEST GLOBAL’. The directive from the commission represents a continuous effort to protect Nigerians against fraudulent investment platforms.
The official release by the SEC explained that GVEST GLOBAL has been branding its network as an investment fund manager and advisory, thereby running a series of investment campaigns. The commission cautions the public that GVEST GLOBAL is neither recognised as a legitimate investment platform nor registered.
“The Commission hereby informs the public that neither GVEST GLOBAL nor any of the above-named entities is REGISTERED by the Commission either to solicit investments from the public or operate in any capacity in the Nigerian capital market,” part of the statement reads.
Aside from its parent name, SEC noted that GVEST GLOBAL also operates with three different names, namely: GVEST (ALAUSA) COOPERATIVE MULTIPURPOSE LIMITED, GVEST INVESTMENT LIMITED and GTEXT HOLDINGS.
Indications from the commission revealed that the Gvest operation displayed traces of a Ponzi scheme, indicating signs of financial harm to innocent Nigerians. While the company is not registered with the SEC, reports indicate that Gvest has been actively promoted across social media platforms and online forums.
SEC advised Nigerians to always confirm the registration status of investment entities on its dedicated portal for verification. In addition, it warned that any Nigerian who invests in Gvest Global, its associated entities or other flagged Ponzi scheme platforms does so at their own risk.
Also Read: Ponzi scheme: SEC flags Tofro crypto exchange as fraudulent investment platform.
The development comes in light of several red flags raised by the SEC on fraudulent investment platforms. Some of these entities 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 are Tofro, a crypto trading operation and the popular Crypto Bridge Exchange (CBEX), to which several Nigerians had lost billions of Naira. The commission also flagged Sapphire Scents Limited, which holds itself out as an Investment Adviser/Fund Manager promoting an unregistered investment scheme.
Aside from GVEST, the SEC’s fight against Ponzi schemes
Amid the continued effort to protect Nigerians against Ponzi scheme operators, the SEC recently clarified issues relating to registration with the Corporate Affairs Commission (CAC). The commission explained that registration with CAC does not validate or qualify a company to perform investment operations.
The SEC’s Director-General, Emomotimi Agama, in an interview on AIT earlier this year, urged Nigerians to exercise caution when approached with high-return investment offers, especially from unlicensed platforms. He added that “if it’s too good to be true, certainly it’s not true.”
The SEC boss reiterated that registration with the CAC and the Special Control Unit Against Money Laundering under the Economic and Financial Crimes Commission (EFCC) does not confer legitimacy on any investment scheme operating in the country.
“Registering with the CAC does not qualify you as an investment company. You can only be qualified to be an investment company if you explicitly receive a registration from the Securities and Exchange Commission,” he added.
Recall that the embattled CBEX platform was also said to have registered with the CAC on September 25, 2024, and the EFCC’s Special Control Unit Against Money Laundering on January 16, 2025. However, it failed to register with the SEC.
Emomotimi said Nigerians must understand the dangers of putting hard-earned money into ventures not registered or regulated by the SEC. He also encouraged stakeholders and investors to adopt the practice of verifying any investment platform on the commission’s portal to avoid falling victim to Ponzi schemes.
“It’s important that our stakeholders and investors know that the first thing you ask from anybody who speaks to you about money matters is their verification with the SEC,” he said.
Investment companies are advised to seek advice from their registered experts in the industry, such as Lawyers, brokers, financial advisers, and investment bankers.
To avoid falling prey to the Ponzi Scheme, Nigerians are advised to invest in legit platforms for financial breakthrough. Recognised investment schemes are public offerings, collective investment schemes and other structured products that provide the avenue to invest properly into areas that are property regulated.
