Regarding the activities of the Property World Africa Network (PWAN MAX), which has been requesting money from gullible investors while posing as a real estate investment company, the Securities and Exchange Commission (SEC) has strongly cautioned the public.
The authenticity of PWAN/PWAN MAX’s operations has been seriously questioned when the SEC emphasised that the company is not registered with the Commission to operate in any capacity within Nigeria’s capital market. The SEC announced in a public notification issued on Tuesday through its official Twitter account available to BrandSpur Nigeria news desk, that it had discovered traits of a fraudulent Ponzi scheme during its investigations into PWAN’s operations.
Red flags raised by the Commission included the company’s inability to fulfil subscriber withdrawal requests and claims of abnormally high returns.
According to the statement: “The Commission hereby informs the public that PWAN/PWAN MAX are NOT REGISTERED by the Commission either to solicit investments from the public or operate in any other capacity within the Nigerian capital market.”
Growing worries about unregulated companies taking advantage of investors in Nigeria’s financial sector have prompted the SEC to issue its warning. The risks of investing on unregistered platforms were underlined by the Commission, which said: “The public is strongly advised to be wary about investing with PWAN/PWAN MAX, as any person who places such investment with these entities does so at his/her own risk.”
The necessity for investors to exercise due diligence in order to prevent becoming victims of fraudulent schemes is highlighted by this warning. Additionally, before committing funds, prospective investors were advised by the SEC to confirm the registration status of any investing platform.
However, to accomplish this, the Commission referred the public to its special website at www.sec.gov.ng/cmos.
Continuing, the statement emphasised the significance of accountability and openness in financial transactions as it reads: “The Commission similarly reminds potential investors of the need to VERIFY the registration status of investment platforms via the Commission’s dedicated portal.”
The SEC’s attempts to crack down on fraudulent and unregistered investment schemes in Nigeria have culminated in this achievement. Before interacting with organisations that promise large returns, the public should be cautious and thoroughly investigate, the Commission has urged on numerous occasions. The PWAN/PWAN MAX case serves as a sobering reminder of the risks associated with unregulated financial activities and the significance of regulatory supervision in safeguarding investors.
“Investors are encouraged to heed the Commission’s warning and avoid transacting with PWAN/PWAN MAX to protect their financial interests.” The SEC is dedicated to protecting the public from financial fraud and will continue to monitor the activities of entities operating within Nigeria’s capital market.
