The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians against investing in an online platform known as Glorious Wealth Fund (GWF), describing its operations as illegal and potentially fraudulent.
In a statement on Thursday, the Commission said GWF, which operates via the website “gloriouswealthfund.com”, is neither registered nor licensed to offer any capital market services in Nigeria, despite claiming to provide investments in Nigerian stocks and other financial instruments.
This comes as the latest of several such public alerts issued by the SEC this year about suspected fraudulent companies opening shops in the country.
An Unregistered and Illegal Operation
The SEC’s investigation confirmed that Glorious Wealth Fund is not authorized to conduct any capital market activities, including receiving deposits, managing investments, or trading securities. The regulator has placed the entity on its list of unregistered, illegal operators, raising significant red flags about its legitimacy and the safety of investors’ funds.
“The ‘Glorious Wealth Fund’ is not registered to operate in the Nigerian capital market,” the SEC’s statement read. “The commission hereby notifies the investing public that any person dealing with the entity… does so at his or her own risk.”
Hallmarks of a Potential Scam
While the SEC’s notice did not detail the platform’s specific offers, such unregistered schemes often lure victims with classic hallmarks of investment fraud:
- Guaranteed or abnormally high returns with little or no risk.
- Pressure to invest quickly, with time-limited “opportunities.”
- Vague or complex strategies often tied to forex or cryptocurrency trading.
- Lack of transparency about company ownership, location, or regulatory licenses.
How to Protect Yourself: The SEC’s Guidance
The SEC urged the public to exercise extreme caution and follow these essential steps before committing any funds:
- Verify Registration: Always check the SEC’s official website for an updated list of registered capital market operators before investing. Legitimate investment firms must be SEC-licensed.
- Avoid “Too-Good-To-Be-True” Offers: Be highly skeptical of promises of extraordinary profits with guaranteed returns. These are a universal warning sign.
- Report Suspicious Schemes: The SEC encouraged anyone who has been solicited by or has invested with Glorious Wealth Fund to contact the commission immediately through its official channels to aid further investigation and enforcement action.
A Broader Crackdown on Illegal Schemes
This warning is part of the SEC’s ongoing efforts to clean up the Nigerian investment landscape and protect citizens from rampant Ponzi schemes and illicit fund managers. The commission has recently intensified its clampdown, dissolving several illegal schemes and prosecuting promoters to serve as a deterrent.
