FG has declared PWAN a fraudulent enterprise with no working license in Nigeria.
PoliticalNews Nigeria studies that the Federal Authorities of Nigeria via the Securities and Alternate Fee has issued a stern warning to the general public relating to the operations of Property World Africa Community, also called PWAN MAX, which has been soliciting funds from unsuspecting buyers beneath the guise of an actual property funding firm.
This Nigeria information platform understands that SEC famous that PWAN MAX just isn’t registered with the Fee to function in any capability inside Nigeria’s capital market, elevating critical issues in regards to the legitimacy of its actions.
In a public discover launched on Tuesday by way of its official Twitter deal with, the SEC stated that investigations into PWAN’s operations uncovered traits typical of a fraudulent Ponzi scheme.
The Fee highlighted pink flags reminiscent of guarantees of unusually excessive returns and the corporate’s failure to honour withdrawal requests from subscribers.
“The Fee hereby informs the general public that PWAN/PWAN MAX are NOT REGISTERED by the Fee both to solicit investments from the general public or to function in some other capability throughout the Nigerian capital market,” the assertion learn.
The SEC’s warning comes amid rising issues about unregulated entities exploiting buyers in Nigeria’s {financial} markets.
The Fee emphasised the dangers related to investing in unregistered platforms, stating, “The general public is strongly suggested to be cautious of investing with PWAN/PWAN MAX, as any one that locations such funding with these entities does so at his/her personal threat.”
It famous that the warning underscores the necessity for due diligence amongst buyers to keep away from falling sufferer to fraudulent schemes.
PoliticalNews Nigeria studies that the SEC urged potential buyers to confirm the registration standing of any funding platform earlier than committing funds.
The Fee directed the general public to its devoted portal at www.sec.gov.ng/cmos for this function.
“The Fee equally reminds potential buyers of the necessity to VERIFY the registration standing of funding platforms by way of the Fee’s devoted portal,” the assertion famous, reinforcing the significance of transparency and accountability in {financial} dealings.
This growth follows a collection of efforts by the SEC to clamp down on unregistered and fraudulent funding schemes in Nigeria.
The Fee has repeatedly referred to as on the general public to train warning and conduct thorough checks earlier than participating with entities promising excessive returns.
It stated, “Traders are urged to heed the Fee’s warning and keep away from transacting with PWAN MAX to guard their {financial} pursuits.”
Nonetheless, reacting to the SEC’s place in a public assertion launched on Wednesday, PWAN Group stated that its buy-back mannequin is a non-public business Bargain between the corporate and particular person shoppers, aimed toward enabling individuals to profit from the capital appreciation of actual property belongings.
The assertion learn: “Our Actual Property Purchase-Again transactions are forward-thinking, contract-based engagements, instantly tied to verifiable bodily properties.
“This mannequin doesn’t represent a capital market product and, primarily based on authorized counsel, doesn’t at the moment fall beneath any outlined regulatory class inside SEC’s present framework.”
PWAN Group reiterated that the scheme doesn’t contain pooling of funds, unrealistic returns, or reliance on steady inflows to maintain payouts—options which can be sometimes related to Ponzi operations.
“There isn’t a ingredient of Ponzi in our mannequin,” the corporate careworn. “Each transaction is backed by a registered and traceable property. Purchasers know precisely what they’re paying for and what they’re getting.”
The corporate additionally famous that the Purchase-Again mannequin was born out of its enterprise philosophy of “shared prosperity”, aimed toward extending the advantages of actual property worth progress to shoppers throughout its over 1,000 property initiatives nationwide.
Whereas expressing its willingness to adjust to regulatory expectations, PWAN Group urged the SEC to supply clearer pointers if such transactions are to fall beneath future regulatory oversight.
“We stay a law-abiding company entity and are totally dedicated to cooperating with regulatory authorities. Ought to the SEC now or sooner or later present a transparent classification or registration framework for this kind of transaction, we are going to promptly align our operations accordingly,” the assertion added.