SEC has warned Nigerians against investing in GVEST Global and related firms, calling them unregistered operators.
The regulator says their activities resemble Ponzi schemes and pose serious risks to investors’ funds.
The Securities and Exchange Commission (SEC) has issued a warning to Nigerians regarding investments in GVEST Global and its related companies, labeling the organization as an unregistered operator running schemes akin to a Ponzi model.
In a public notice, the capital market regulator stated that GVEST Global is illegally presenting itself as an investment adviser and fund manager while offering unregistered schemes to unsuspecting members of the public.
SEC reported that GVEST Global operates under multiple names, including GVEST (Alausa) Cooperative Multipurpose Limited, GVEST Investment Limited, and GTEXT Holdings. The Commission emphasized that none of these entities is registered or licensed to solicit funds or conduct investment activities in Nigeria’s capital market.
The Commission highlighted that GVEST Global has heavily relied on aggressive social media campaigns and online promotions to attract investors, a pattern often associated with fraudulent investment schemes. “Investigations have revealed that its operations exhibit typical indicators and characteristics commonly linked to Ponzi schemes,” the SEC warned.
It further advised the public to avoid engaging with GVEST Global or any of its representatives, cautioning that those who disregard this advisory do so at their own risk.
The regulator also identified Risevest and Stecs as unregistered entities currently soliciting investments from Nigerians. SEC reiterated that these platforms are not authorized by Nigerian law to provide fund management or investment advisory services.
Reaffirming its responsibility to protect investors, SEC urged Nigerians to always verify the licensing status of any investment promoter or company through its official portal before committing their funds. The Commission warned that dealing with unregistered operators poses significant risks, including the potential total loss of capital.
