SEC seals up firm over alleged illegal operation

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Stanley Opara and Ifeanyi Onuba

The Securities and Exchange Commission  has sealed up the premises of Yuan Dong for alleged illegal operation in the country on Sunday.

The regulator said the move was in furtherance of its determination to protect investors and ensure that illegal operators are not allowed to operate in the Nigerian capital market.

The company, also known as YDEC, parades itself as an investment company, thus, extending invitations to unsuspecting members of the public to subscribe to a scheme identified as a Resources Investment Account, according to a statement by the Head, Corporate Communication, SEC, Naif Abdussalam.

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 added that the company also enticed its customers with payment of bonuses should they convince more investors to invest in the scheme.

The commission said it had since conducted an investigation into the activities of the company and had established that its activities constituted a breach of the Investment and Securities Act (2007).

Furthermore, SEC said it discovered that contrary to their supposed existence in over 20 locations across the country, the company only had functional offices in Asaba, Kano and Abuja, adding that, “The promoters of these illegal operations have been arrested by the Nigeria Police Force and are undergoing interrogation.”

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