As the issue of the MMM Ponzi scheme continues to rage in the Nigerian economy, the Securities and Exchange Commission, has slammed another similar investment scheme with indefinite closure of its business premises.

The action was against Yuan Dong (YDEC), in furtherance of the apex capital market regulator’s determination to protect investors and ensure that illegal operators are not allowed to operate in Nigeria’s capital market.

Investments in the scheme range from a minimum deposit of ₦10, 000 to a maximum deposit of ₦240, 000 per investor via its functional offices in Asaba Delta State and Abuja, the federal Capital Territory (FCT).

Head Corporate Communication of SEC, Naif Abdussalam 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.

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 revealed that it conducted an investigation into the activities of this company and 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

SEC reiterated its commitment to sanitize the Nigerian capital market of all illegal operators, the investing public, advising the investing public to be cautious in the course of making investment decisions.

SEC warned that in pursuance of its commitment to intolerance policy of unhealthy practices in the market, and 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.”

While warning others in similar business, the commission said that, the action against Dong (YDEC), became inevitable in order to put an end to the unlawful activities of the company against unsuspecting investors” he stated.

LEAVE A REPLY

Please enter your comment!
Please enter your name here