The Securities and Exchange Commission (SEC) has said that it has sealed up the premises of Yuan Dong (YDEC) for operating illegally as an investment company.
SEC in a statement on Sunday by its Head, Corporate Communication, Naif Abdussalam, said the move was in furtherance of its determination to protect investors and ensure that illegal operators are not allowed to operate in Nigeria's capital market.
The commission explained that Yuan Dong has been parading itself as an investment company thereby extending invitations to unsuspecting members of the public to subscribe to a scheme identified as a Resources Investment Account.
Abdussalam stated 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 N80.00 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
SEC said an investigation it conducted showed that the activities of the company constitute a breach of the Investment and Securities Act (ISA), 2007.