The Securities and Exchange Commission (SEC) has warned the public to beware of Property World Africa Network (PWAN MAX), operating as a real estate investment organisation soliciting funds from potential investors.
SEC revealed that PWAN/PWAN MAX was not registered with the commission to operate in any capacity within Nigeria’s capital market.
The warning is coming just after CBEX investors lost over N1 trillion in a ponzi scheme.
In a public notice released on Tuesday via its official Twitter handle, SEC revealed that investigations into PWAN’s operations uncovered characteristics typical of a fraudulent Ponzi scheme.
The Commission highlighted red flags such as promises of unusually high returns and the company’s failure to honour withdrawal requests from subscribers.
“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,” the statement read.
The SEC’s warning comes amid growing concerns about unregulated entities exploiting investors in Nigeria’s financial markets.
“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.”
“Investigations have revealed that PWAN’s operations exhibit the typical indicators of a fraudulent Ponzi scheme, including the promise of unusually high returns and failure to honour withdrawal requests from subscribers. Accordingly, 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 SEC stated.
The commission further urged Nigerians to verify the registration status of investment platforms via its portal: www.sec.gov.ng/cmos before engaging in any transactions.
The website of a company with the name PWAN claimed it has been in existence since 2012.
It says:“PWAN is an acronym for ‘Property World Africa Network (PWAN) and we exist to make home ownership dream a reality for all in Nigeria, Africa and beyond. Pwan Max is a real estate marketing, investment, management and development company with a drive to providing choice classic serene, luxury homes within workable budget for our clients.”
PWAN MAX offered investors returns of up to 30 percent annually on land deals.
For example, buyers were told that a plot of land purchased for N25 million could be resold for N32.5 million within a year.
