SEC flags unregistered investment schemes by PWAN/PWAN MAX

Nigeria’s Securities and Exchange Commission (SEC) has advised the general public to be wary of the operations of Property World Africa Network (PWAN) and its associated entity PWAN MAX, adding that the real estate outfit is operating outside laid-down regulatory frameworks.

In a public notice circulated by the Commission, the SEC stated that PWAN/PWAN MAX is not registered to solicit funds from investors or engage in any form of capital raising activities. Despite presenting itself as a real estate investment platform, the company has not secured the mandatory approval from the regulatory body to operate such services.

 Investigations into PWAN’s activities have revealed key red flags typically associated with fraudulent ponzi schemes. These include promises of unrealistically high returns on investments, heavy dependence on a referral system to attract new investors and a pattern of failed withdrawal requests, suggesting liquidity issues and possible mismanagement of funds.

The commission warned that such practices are often used to lure unsuspecting Nigerians into fraudulent investment traps. “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 statement read.

In recent years, the SEC has ramped up its efforts to protect retail investors from the surge in illegal investment schemes, particularly those leveraging real estate and cryptocurrency to promise quick and large returns.

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The commission also reminded the investing public of the importance of verifying the regulatory status of any investment platform via its official portal: www.sec.gov.ng/cmos. The portal lists all licensed operators in the Nigerian capital market and helps prevent individuals from falling prey to unregulated schemes.