Nigerian Government close down Ponzi scheme firm

The Federal Government of Nigeria through the Security and Exchange Commission SEC has closed down a company, Yuan Dong for involving in Ponzi scheme operations.

SEC head of Cooperate Communication , Mr Naif Abdussalam revealed this in a statement issued in Abuja on Sunday.

Abdussalam said, they took the decision to seal up the premise of the company to stop it from further  illegal activities against unsuspecting investors.

Explaining further, he 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.

“The company promises a daily profit of N80 and N2,400 depending on the category of investment,” he said.

Abdussalam said the commission’s investigations showed that the company also enticed its customers with payment of bonuses should they convince more investors to invest in the scheme.

He said that the commission had established that the company’s activities also constituted 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 Commission wishes to notify the investing public that the company is not licensed to carry out investments business of any type and as such its operations are illegal,” he said.

Abdussalam advised the public to exercise due diligence and caution in the course of making investment decisions.

He said valid licence of lawful operators could be obtained on the commission’s website by members of the public to confirm the licences of firms they intend to carry investment activities with.