From Uche Usim, Abuja, and Chinenye Anuforo
The Securities and Exchange Commission (SEC) has sealed the premises of Yuan Dong (YDEC), an illegal finance company that entices investors with juicy but phoney rewards on investments.
The Commission has also arrested operators of the scheme, in a move aimed at protecting investors from predators in the capital market.
According to SEC’s spokesman, Naif Abdussalam, the parastatal conducted an investigation into the activities of YEDC and findings showed its operations constituted a breach of the Investment and Securities Act (ISA), 2007.
The company, Abdussalam noted, parades itself as an investment company thereby extending invitations to unsuspecting Nigerians to subscribe to a scheme identified as a Resources Investment Account.
“Investments in the scheme range from a minimum deposit of N10,000 to a maximum deposit of N240, 000.
“The investment period of the scheme is pegged at a minimum of 30 working days to a maximum period of 10 months with offer of interest rates on short and medium term basis, which include promise of a daily profit of N80.00 and N2,400 depending on the category of investment”.
He further disclosed that the company also entices its customers with payment of bonuses should they convince more investors to invest in the scheme.
“Furthermore it was discovered that contrary to their supposed existence in over 20 locations across the country, the company only has functional offices in Asaba, Kano and Abuja. The promoters of these illegal operations have been arrested by the Nigeria Police Force and are undergoing interrogation.
“Consequently, pursuant to the Commission’s non tolerance policy of unhealthy practices in the market, the general public is hereby informed that in exercise of its powers enshrined in Section 13 (w) of the ISA 2007, the Commission “Sealed Up” the premises of the company on Thursday, February 23, 2017. This action became necessary to completely put an end to the unlawful activities of the company against unsuspecting investors” he stated.
The SEC spokesman added the YDEC was not licensed to carry out investment business of any sort, even as he warned the investing public not to patronise the company to avoid unpalatable consequences.
“We hereby reiterate our commitment to sanitise and rid the Nigerian capital market of all illegal operators. The investing public is however advised to exercise due diligence and caution in the course of making investment decisions. Valid licenses of lawful operators can be obtained on the Commission’s website; members of the public are advised to confirm the licenses of firms they intend to carry investment activities with”, Abdussalam said.
Recall that both the Central Bank of Nigeria (CBN) and SEC warned investing public over the MMM ponzi scheme before it crashed last December.
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