SEC Alerts Nigerians on Unregistered Investment Schemes

The Securities and Exchange Commission (SEC) has issued a warning to Nigerians regarding the operations of Silverkuun Investment Cooperative Society and Silverkuun Limited, identifying them as illegal operators in the country’s capital market.

In an official alert, the Commission stated, “The attention of the Securities and Exchange Commission (‘the Commission’) has been drawn to the activities of Silverkuun Investment Cooperative Society/Silverkuun Limited which holds itself out as an Investment Adviser/Fund Manager.”

The Commission further clarified, “Silverkuun Investment Cooperative Society/Silverkuun Limited is not registered to operate in any capacity in the Nigerian Capital Market.” It urged Nigerians to avoid engaging with these entities, warning that transacting with unregistered platforms poses significant financial risks, including fraud and total loss of investment.

The SEC also cautioned against investing in TOFRO.COM, operated by ToFro Exchange Global Professional Station, noting that the platform claims to be a cryptocurrency trading site but lacks a license to operate within Nigeria’s capital market. It warned, “Those who invest with TOFRO do so at their own risk.”

To help investors avoid fraudulent schemes, the SEC reiterated its call for Nigerians to verify investment opportunities through its dedicated portal, stating, “The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission’s dedicated portal – www.sec.gov.ng/cmos before transacting with them.”

Additionally, the SEC has released a list of 30 red flags designed to help Nigerians identify and steer clear of Ponzi schemes and other fraudulent investment platforms. The Commission emphasized that fraudsters often lure unsuspecting victims with promises of instant wealth, high-pressure sales tactics, and requests for upfront payments. Nigerians are urged to exercise caution and ensure due diligence before committing funds to any investment opportunity.