Business

SEC closes Yuan Dong over multi-million naira scam

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By  Kayode Tokede

The Securities and Exchange Commission has shutdown Yuan Dong (YDEC), an illegal Capital Market Operator for engaging in a Multi-million naira scam.

SEC disclosed that 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.

The apex capital market regulating body in a circular said, Investments in the scheme ranges from a minimum deposit of N10, 000 to a maximum deposit of N240,000.

SEC circular said, “The attention of the SEC has been drawn to the activities of an Illegal Operator carrying on business under the name of Yuan Dong (YDEC).

“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.  Investments in the scheme ranges 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.

“Similarly, 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 and are undergoing interrogation.

The Commission notifies the investing public that the Yuan Dong 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.

“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,” the circular by SEC added.

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