The management of PWAN Group has denied allegations by the Securities and Exchange Commission that its real estate buy-back transactions bear the characteristics of a Ponzi scheme.
In a statement provided to our correspondent by the firm on Thursday, PWAN characterized the SEC’s stance as “incorrect and deceptive,” underscoring that their project constitutes a clear-cut, collateral-supported business agreement rather than being classified as a securities-market item or an investment plan regulated by the Commission.
The PWAN Group has noticed a recent press statement from the Nigerian SEC indicating that our Real Estate Buy-Back deals might resemble a Ponzi scheme,” the firm stated. “We believe this description to be incorrect and deceptive, prompting us to offer clarification for the sake of our shareholders and the broader community.
On Tuesday, the SEC posted an official statement on its website cautioning the public about investing in Property World Africa Network and its related entity, PWAN Max. The commission characterized their activities as indicative of a deceptive Ponzi scheme.
The commission indicated that PWAN and PWAN Max have not been authorized to function within the Nigerian capital market or to seek investments from the general public.
PWAN Group stated that their buy-back model operates through direct pacts with each client linked to particular real estate holdings. The company asserts that these deals are non-speculative and independent of pooled resources, unfeasible profits, or ongoing capital infusions—all factors commonly connected to Ponzi scams.
“This initiative is not considered a capital market product and, according to our legal advisors, does not presently fit into any specific regulatory classification within the current SEC guidelines,” PWAN said.
The real estate company stated that throughout the past twelve years, it has upheld a strong reputation for honesty and openness. They further mentioned that this initiative resonates with their corporate ethos of “mutual growth,” supported by documented and registered assets spanning over 1,000 property developments in Nigeria.
PWAN also pointed out that they have an workforce of over 10,000 employees along with approximately one million independent sales representatives across the country.
Despite restating its dedication to maintaining high ethical standards in business operations, PWAN declared itself prepared to adhere to any forthcoming regulatory guidelines issued by the SEC that specifically outline the nature of such transactions.
“We remain a law-abiding corporate entity and are fully committed to cooperating with regulatory authorities. Should the SEC, now or in the future, provide a clear classification or registration framework for this type of transaction, we will promptly align our operations accordingly,” the statement added.
The firm asked everyone to ignore what they called “misrepresentations” and to maintain confidence in their dedication to safeguarding investors’ interests and fostering long-term financial growth via property investments.
Provided by Syndigate Media Inc. (
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