By Dipo Olowookere
Operations of Yuan Dong (YDEC), which claimed to be an investment company in Nigeria, have been declared illegal by the Securities and Exchange Commission (SEC) and has subsequently sealed up the business premises of the firm.
The agency disclosed that on Thursday, February 23, 2017, pursuant to its non-tolerance policy of unhealthy practices in the market, and in exercise of its powers enshrined in Section 13 (w) of the ISA 2007, it “sealed up” the premises of Yuan Dong in order to completely put an end to the unlawful activities of the company against unsuspecting investors.
A statement issued by the capital market operator dated Saturday, February 25, 2017, disclosed that Yuan Dong is an illegal capital market operator in Nigeria and has warned public investors to be careful of the firm.
SEC said in the statement posted on its website that Yuan Dong 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 market regulator noted that “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 and N2,400 depending on the category of investment,” it added.
SEC said the company also entices its customers with payment of bonuses should they convince more investors to invest in the scheme.
The commission pointed out that it has since conducted an investigation into the activities of Yuan Dong 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 statement said.
SEC said it “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.”
The statement said while it 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.
It pointed out that valid licenses of lawful operators can be obtained on its website, www.sec.gov.ng and members of the public are advised to confirm the licenses of firms they intend to carry investment activities with.
Adedapo Adesanya