Fraudsters May Pose As Brokers Selling Pending IPO or pre-IPO Shares Of Well-known Firms


Sunday, August 19, 2018  06.44AM  / SEC Ed(as adpted)


There are documented cases of potential scams in which fraudsters may pose as brokers pretending to sell pending IPO or pre-IPO shares of well-known companies.  Fraudsters sometimes use official looking forms that seem to come from the regulators or approved CMO’s or another legitimate source to establish credibility with the victim. 


In some cases, the fraudsters have emailed fake forms from a source pretending to be the regulator or issuer claiming that the fake form confirms the investor’s purchase of the shares.  It is unclear whether the investors have actually purchased any shares.  Instead, the fraudsters may have simply stolen their money.  The fraudsters may also provide online account access to investors on a website that looks like a brokerage firm website.


Check Background And Registration Status

When someone tries to sell you an investment, the first thing you should do is check whether they are registered. 


Whilst Investors in the United States can check out the background, including registration or license status, of any firm or financial professional they are considering dealing with (including broker-dealers) through the SEC’s Investment Adviser Public Disclosure (IAPD) database, which is available on; Investors in Nigeria will have to exercise extreme caution as the market builds up capacity to make sure information readily available.


You can contact the SEC, the investment SRO’s and reputable capital market operators or the CIIA; apart from you securities advisors to validate such a concern. Proshare’s research unit can also offer you help as much as is possible (


Do not be fooled by con artists who create websites that look and feel legitimate, who sound convincing, or who are very responsive when you contact them just as legitimate brokers may be.  Even if someone tells you that they are registered, verify this fact independently.  A few minutes of your time may save you from handing over your money to fraudsters.


Impersonating Official Sources

Fraudsters, as in these scams, may send fake emails that pretend to be from official sources and you should be alert to these practices, including those using similar official-looking domain names.


If you are unsure of an offer, investment detail or documentation; kindly contact your personal Finance or securities advisor or the Securities & Exchange Commission (SEC) via

·         Phone: +234 (0) 94621100; +234 (0) 94621168

·         Email:

·         Twitter: @SECNIGERIA

·         Facebook: Securities and Exchange Commission Nigeria


Alternatively, you can contact SEC-approved trade groups such as the Association of Corporate and Individual Investment Advisers (CIIA) reachable via @CiiaNigeria .


For more information on how regulators can assist/protect you; read the FAQ published by the SEC Nigeria here.



Proshare Nigeria Pvt. Ltd.


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