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Yuan Dong, another MMM styled ponzi scheme shut down, promoters arrested by SEC

The Securities and Exchange Commission (SEC) has nipped in the bud, another ponzi-styled scheme, Yuan Dong by sealing up the premises on grounds of non-registration and unacceptable investment activities in Nigeria.

A statement issued by the Head, Corporate Communication of SEC, Naif Abdussalam, in Abuja, said the closure was to end unlawful activities of the company against unsuspecting investors.

The statement said in parts; “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.”

Explaining more, Abdussalam noted that 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.

Besides, Yuan Dong which seemed to have originated from China just as the failed MMM came from Russia, activities ran contrary to the provisions of the Investment and Securities Act, 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.”

Accordingly, Nigerians are advised to exercise due diligence and caution in the course of making investment decisions.

Details of the ponzi scheme sourced from the internet apparently revealed that Yuan Dong is a part of the Yuan Dong A Mart, a Far Eastern group that claims to be involved in textiles, petrochemicals and energy, polyester and synthetic fibre, cement and building materials, retail and department stores, financial services, sea/land transportation, communications and Internet, construction, hotels and philanthropies.

It claims 60 years of business experience and argued that it has nine public listed companies in the Group, which has total assets exceeding $80 billion, with annual revenues surpassing $18.7 billion and over 600,000 VIP and shareholders.

For a company that claims a Far Eastern pedigree, the telephone contacts that it listed were all Nigerian lines: +2349094841399 and +2349093074954.

Its office address is also the 2nd Floor, Othni Plaza, Zone 1, Abuja, clearly contradicting its Far Eastern origin and indicating that the website was created to fool unsuspecting Nigerians.