Ponzi Scheme: SEC Seals Up Another Company
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) shut down an investment firm disguising as a ponzi scheme.
The firm, Yuan Dong with offices in Kano, Asaba and Abuja promised daily returns of between N80 and N2400 depending on the size of one’s investment.
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 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.”
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.
The Commission notified 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 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 reiterated its commitment to sanitise 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.
