The Securities and Exchange Commission (SEC) has flagged the real estate investments by Property World Africa Network (PWAN) as fraudulent following m
The Securities and Exchange Commission (SEC) has flagged the real estate investments by Property World Africa Network (PWAN) as fraudulent following multiple reports about it.
In the notice published on its website on Tuesday, the SEC stated that the activities of PWAN were similar to those of a fraudulent Ponzi scheme.
The regulatory body stated that the company’s PWAN/PWAN Max was not registered with its body. It warned investors against committing to it.
“The attention of the Securities and Exchange Commission (“The Commission”) has been drawn to the activities of “Property World Africa Network” (PWAN), which holds itself out as a real estate investment company and is soliciting funds from the public for investment purposes, through ‘PWAN MAX’,” the SEC stated.
“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.
“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.”
In January 2024, it was reported about how the real estate agent sold waterlogged land to a client in Ibeju-Lekki, Lagos. For eight years, the client had been unable to build anything on the land. PWAN only made excuses while charging her for it.
As well as how the real estate firm failed to provide documentation for a client’s plot since 2017.
The client, who paid N2 million for land in Fountain Brooks Gardens, Ibeju-Lekki, said the company had assured her the land was free of issues. PWAN later claimed they were still processing government documents eight years after the sale.
PWAN Premium then offered her a different plot valued at the 2017 price, which she rejected.
On April 30, PWAN failed to present plots of land to a client three years after receiving full payment of N12 million.
