SEC Warns Nigerians About Another Investment Scheme As Investors Are Unable To Withdraw Funds

• SEC has sent a warning message to Nigerians against engaging with Glorious Wealth Fund (GWF), stating the platform is unregistered
• The commission describe the claim by GWF of SEC approval or supervision is false, misleading, and fraudulent
• Nigerians are advised to verify investment platforms via the SEC portal and avoid dealing with the company to prevent financial loss

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Securities and Exchange Commission (SEC) has notified the public of the activities of an online investment platform operating under the name Glorious Wealth Fund (GWF) through its website, gloriouswealthfund.com.

In a public advisory released on its website on Thursday, December 4, the Commission stated that Glorious Wealth Fund is neither registered nor licensed by the SEC to operate or provide any form of capital market services in Nigeria.

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The SEC warned that engaging with unregulated or unregistered entities exposes investors to serious financial risks, including fraud and potential loss of funds.

Part of the statement reads:

“The Commission hereby informs the public that Glorious Wealth Fund (GWF) is not registered or licensed by the Securities and Exchange Commission (SEC) Nigeria to carry out any form of capital market activity in the Nigerian capital market.

“The public should take note that any claim by GWF that it is supervised, licensed, or approved by the SEC is false, misleading, and fraudulent."

SEC advises public to be cautious

The regulator further cautioned Nigerians to avoid dealing with Glorious Wealth Fund or its representatives, stressing that anyone who chooses to engage does so at their own risk.

The SEC noted.

“The Commission has received complaints regarding the inability of investors to withdraw their funds after making deposits on the platform. These activities bear the clear characteristics of an illegal investment scheme designed to defraud unsuspecting Nigerians.

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"Accordingly, the public is advised to refrain from dealing with GWF, as any person who engages with the entity or its representatives does so at his/her own risk."

The Commission reminded investors to always confirm the registration status of any company offering investment opportunities through its official verification portal, BusinessDay reports.

It added:

“The Commission uses this medium to reiterate that transacting in the Nigerian Capital Market with unregistered and unregulated entities exposes investors to financial risk including fraud and potential loss of investment.

"The investing public is therefore reminded to VERIFY the registration status of companies and entities offering investment opportunities on the Commission's dedicated portal www.sec.gov.ng/cmos, before transacting with them."

SEC warns Nigerians about new Ponzi scheme

Earlier, Legit.ng reported that the SEC has alerted the public to the illegal activities of a company known as Forsman & Bodenfors Ltd (F&B), which is being paraded as the Nigerian branch of a Swedish advertising company.

The commission stated that the promoters of Forsman & Bodenfors Ltd are operating with clear criminal intent by falsely claiming affiliation with a reputable international brand.

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The company is allegedly luring Nigerians with promises of automatic employment in exchange for recruiting new members, who are then required to pay various sums of money for different positions within the company.

Source: Legit.ng