Ponzi Scheme: SEC flags Glorious Wealth Fund as an illegal investment platform

The Securities and Exchange Commission (SEC) has flagged Glorious Wealth Fund (GWF) as a Ponzi Scheme. This follows claims that investors are unable to withdraw their earnings after making deposits on the online investment platform.

A public disclosure by the Commission on Thursday noted that Glorious Wealth Fund has been parading itself as a licensed investment platform by offering services on Nigerian stocks and other financial instruments. 

GWF claimed to be under the supervision of the SEC and also licensed by the Central Bank of Nigeria (CBN). Statement from the company’s official platform reads: 

“Glorious Wealth Fund is a government-endorsed financial innovation initiative, supervised by the Securities and Exchange Commission of Nigeria (SEC Nigeria) and guided by the Central Bank of Nigeria (CBN).” 

However, the capital market regulator has now alerted Nigerians that the platform is a Ponzi Scheme. It advised Nigerians that any claims by GWF that it is supervised, licensed, or approved by the SEC are false, misleading, and fraudulent. 

“The Commission hereby informs the public that the 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,” part of the statement reads. 

During its operation, the platform has reportedly displayed signs of a Ponzi Scheme. According to the SEC, investors on the platform have filed complaints about their inability to withdraw their funds after depositing. 

The commission added that activities such as refusal to disburse returns on investment represent the features of an illegal investment scheme designed to defraud innocent Nigerians.

“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,” it added. 

Nigerians are advised to verify the registration status of companies offering investment opportunities in their dedicated portal: www.sec.gov.ng/cmos

Also Read: Ponzi scheme promoters, sponsors now face 10 years imprisonment or N40 million fine.

Nigerians suffer huge financial losses to Ponzi schemes 

Last month, the SEC’s Head of Fintech and Innovation Department, AbdulRasheed Dan-Abu, revealed that Nigerians lost N300.2 billion to Ponzi schemes in recent years. The amount, which excluded CBEX, cut across fraudulent investment schemes including MMM, Famzhi Interbiz Ltd, and MBA Forex and Capital Investment.

A breakdown of the N300.2 billion showed that MMM Nigeria accounted for about N18 billion. The MBA Forex and Capital Investment Ltd scheme accumulated about N213 billion from Nigerians before its collapse, while Nospecto Oil and Gas defrauded investors of roughly N45 billion. 

Other Ponzi Schemes include Chinmark Group, Ovaioza Farm Produce Storage Business, and Famzhi Interbiz Ltd, where they collectively cost Nigerians over N24 billion.

The development comes in light of several red flags raised by the SEC on Ponzi Schemes. Some of these illegal investment platforms 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 GVEST, 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.