Suspected Copreus-Gladius operators resurface as Evolute: SEC warns investors

Capital market regulator the Securities and Exchange Commission (SEC) has raised fresh concerns over what it believes is the re-emergence of individuals linked to previously flagged foreign investment schemes, warning investors to exercise extreme caution after receiving complaints against a newly launched entity operating under the name ‘Evolute’.

The regulator had previously dealt with complaints involving Copreus, a company that allegedly made unsolicited calls to members of the public encouraging them to invest in foreign stock markets.

According to Securities and Exchange Commission (SEC) Acting Director General Thushara Jayaratne, investor complaints against Copreus prompted investigations by the Criminal Investigation Department (CID), after which the company shut down its office at the East Tower of the World Trade Center in Colombo and subsequently resumed operations under a new name, Gladius, from the same location. “Many investors lost money, complaints poured in, and the CID launched an investigation. The company then quietly shut down its office and reappeared as Gladius at the same address,” Jayaratne told Mirror Business.The SEC had publicly warned investors about Gladius and lodged a complaint with the CID. Investigations into investor complaints against the entity remain ongoing, he added.

The SEC said it has begun receiving complaints about Evolute, which it alleged appears to be linked to the same operators. “We are requesting investors to be vigilant and do not get caught,” the SEC said.

The SEC has intensified its investor protection efforts over the past year amid a rise in complaints relating to unregulated entities soliciting investments in foreign securities and overseas trading platforms.

The regulator has repeatedly cautioned that it does not license or supervise firms offering investment services in foreign jurisdictions and has urged the public to verify the credentials of any investment provider before committing funds. The SEC maintains a list of licensed market intermediaries and has advised investors to deal only with authorised entities.