SEC Seals up Yuan Dong
In furtherance of its determination to protect investors and ensure that illegal operators are not allowed to operate in Nigeria’s capital market, the Securities and Exchange Commission, Nigeria (SEC) has sealed up the premises of Yuan Dong (YDEC).
According to a statement by Head Corporate Communication of SEC, Naif Abdussalam, the Company parades itself as an Investment Company thereby extending invitations to unsuspecting members of the public to subscribe in a scheme identified as a Resources Investment Account.
Abdussalam said, “Investments in the scheme range from a minimum deposit of ₦10, 000 to a maximum deposit of ₦240, 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 ₦80.00 and ₦2, 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
The Commission has since conducted an investigation into the activities of this company and has established that its activities constitute a breach of the Investment and Securities Act (ISA), 2007. 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.
The Commission wishes to notify the investing public that the company is not licensed to carry out investments business of any sought; and as such its operations are illegal.
“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.
He said while the Commission wishes to use this medium to reiterate its commitment to sanitize 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.